Maryanne Company Is Contemplating Three Different Proposals for the Purchase

Maryanne Company is contemplating three different proposals for the purchase of some equipment. The relevant data are as follows: $\begin{array}{llll}&\text { Proposal C }&\text { Proposal A }&\text { Proposal }\\\text { Cost }&\$180,000&\$300,000&\$800,000\\\text { Annual savings of cash operating }\\\text { expenses } & \$ 25,000 & \$ 50,000 & \$ 150,000 \\\text { Terminal salvage value } & -0- & -0- & -0- \\\text { Estimated useful lif e in years } & 10 & 10 & 10 \\\begin{array}{l}\text { Minimum desiredrate of }\end{array} & 12 \% & 12 \% & 12 \% \\\text { return } & & & \\\text { Method of depreciation } & \mathrm{S} / \mathrm{L} & \mathrm{S} / \mathrm{L} & \mathrm{S} / \mathrm{L}\end{array}$ Required:
Using net present value analysis, select the best proposal. Ignore income taxes.