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 $774,777 Ramp Facilities Computer Network Amount to be invested $453,132 $242,493 Annual net cash flows: Year 1 144,000 Year 2 321,000 299,000 273,000 215,000 194,000 172,000 99,000 72,000 Year 3 Present Value of $1 at Compound Interest Year 20% 12% 0.893 0.797 15% 0.870 0.756 0.833 0.694 0.712 0.658 0.579 0.636 0.572 6% 0.943 0.890 0.840 0.792 0.747 0.705 0.665 0.627 0.592 0.558 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 0.467 0.424 0.386 0.482 0.402 0.567 0.497 0.432 0.335 7 8 0.507 0.452 0.404 0.361 0.322 0.376 0.327 0.284 0.247 0.279 0.233 0.194 0.162 10 Required