T-Mobile Wi-Fi * 79% 2:10 PM Obj 2, 3, PR 25-6A Capital rationing decision for a service company involving four proposals Renaissance Capital Group is considering allocating a limited amount of capital investment funds among four proposals. The amount of proposed investment, estimated income from operations, and net cash flow for each proposal are as follows: Net Cash 64,000 64,000 64,000 Proposal A 680,000 $200,000 200,000 160,000 Proposal B 320,000 s 26,000 90,000 5 20,000$340 Proposal C 108,000 33,400 55,000 31,400 28,400 25,400 47,000 250 000 180,000 Proposal D 400,000 100,000 80,000 20,000 160,000 $700.000 The company's capital rationing policy requires a maximum cash payback period of three years. In addition, a minimum average rate of return of 12% is required on all projects. If the preceding standards are met, the net present value method and present value indexes are used to rank the remaining proposals I. Compute the cash payback period for each of the four proposals. 2. Giving effect to straight-line depreciation on the investments and assuming no estimated residual value, compute the average rate of return for each of the four proposals. (Round to one decimal place