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Continental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as

Continental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows:

Maintenance Equipment Ramp Facilities Computer Network
Amount to be invested $768,279 $498,703 $239,770
Annual net cash flows:
Year 1 386,000 278,000 166,000
Year 2 359,000 250,000 115,000
Year 3 328,000 222,000 83,000

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

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Continental Railroad Company is evaluating three caaltal westment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Maintenance Ramp Computer Equipment Facilities Network Amount to be invested $768,279 5498,702 $239,770 Annual net cash flows: Your 1 386,000 278,000 166,000 Year 2 359,000 250.000 115,000 Year 3 3 328,000 222.00% 83,000 Present Value of si at Compound Interest Year 6% 10% 12% 15% 20% . 0.943 0.893 0.870 0.833 0.909 0.825 2 0.890 01.792 0.756 0.694 3 0.840 0.751 0.712 0.65 0.579 4 0.792 0.63 0.572 0.182 0.093 0.621 5 2.747 0.557 0.497 0.402 0.705 0.554 0.307 0.432 0.335 7 0.655 0.513 0.452 0.376 0.2.79 8 0.627 0.404 0.327 0.233 0.457 0,424 Q 0.592 0.351 0.214 0.194 10 0.558 0.336 0.322 0.247 0.162 Required: 1. Assuming that the desired rate of retum is 20%, prepare a represent value analysis for each proposal. Use the present value of 51 ttle above. If required, use the minus sont indicate a negative net present value. If required, round to the nearest dollar, Maintenance Equipment Ramp Facilities Computer Network Total present valuc of net cash flow $ Amount to be invested Net present value $ s $ 2. Determine a present value index for each araposal. If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Kernp Facilities Computer Network

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