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$1,132,408 $696,158 $370,868 Amount to be invested Annual net cash flows: Year 1 Year 2 Year 3 442,000 208,000 314,000 283,000 251,000 411,000 376,000 144,000

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$1,132,408 $696,158 $370,868 Amount to be invested Annual net cash flows: Year 1 Year 2 Year 3 442,000 208,000 314,000 283,000 251,000 411,000 376,000 144,000 104,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1. Assuming that the desired rate of return is 5%, prepare a net present value analysis for each proposal. Use the present value of $1 table above. If required, use the minu Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow Amount to be invested Net present value 2. Determine a present value index for each proposal. If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Ramp Facilities Computer Network

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