List the acceptable capital investment proposals

Assignment Help Managerial Accounting

Reference no: EM132784920

Question - Marble Peak Company's managers have gathered all of the capital investment proposals for the year, and they are ready to make their final selections. The following proposals and related rate-of-return amounts were received during the period:

Project	Capital Investment	Rate of Return
A	$450,000	19%
C	500,000	28%
E	654,000	12%
G	800,000	32%
I	300,000	23%
K	240,000	18%
M	180,000	16%
O	400,000	26%
Q	560,000	14%
S	1,200,000	22%
U	800,000	20%

Assume that the company's minimum rate of return is 20 percent and that $4,000,000 is available for capital investments during the year.

Required -

1. List the acceptable capital investment proposals in order of profitability.

2. Accounting Connection - Which proposals should be selected for this year? Why?

Reference no: EM132784920

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