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:

Line Item Description	Maintenance Equipment	Ramp Facilities	Computer Network
Amount to be invested	$624,056	$406,058	$209,405
Annual net cash flows:
Year 1	307,000	224,000	144,000
Year 2	286,000	202,000	99,000
Year 3	261,000	179,000	72,000

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 20%, prepare a net present value analysis for each proposal. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest dollar.

Line Item Description	Maintenance Equipment	Ramp Facilities	Computer Network
Total present value of net cash flow	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
Less amount to be invested	fill in the blank 4	fill in the blank 5	fill in the blank 6
Net present value	$fill in the blank 7	$fill in the blank 8	$fill in the blank 9

2. Determine a present value index for each proposal. If required, round your answers to two decimal places.

Line Item Description	Present Value Index
Maintenance Equipment	fill in the blank 10
Ramp Facilities	fill in the blank 11
Computer Network	fill in the blank 12

3. The (fill-in-the-blank 1 of 4)

[maintenance equipment, ramp facilities, computer network]

has the largest present value index. Although fill in the blank 2 of 4

[maintenance equipment, ramp facilities, computer network]

has the largest net present value, it returns less present value per dollar invested than does the (fill-in-the-blank 3 of 4)

[maintenance equipment, ramp facilities, computer network]

, as revealed by the present value indexes. The present value index for the (fill-in-the-blank 4 of 4)

[maintenance equipment, ramp facilities, computer network]

is less than 1, indicating that it does not meet the minimum rate of return standard.