1. Basil and Oregano Railroad Co. is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: roblem 1 Instructions a. Assuming that the desired rate of return is 20%, prepare a net present value analysis for each proposal. Use the present value of $1 table appearing in this chapter (Exhibit 2). b. Determine a present value index for each proposal. (Round to two decimal places.) c. Which proposal offers the largest amount of present value per dollar of investment? Explain