First United Bank Inc. is evaluating three capital investment projects using the net present value method. Relevant data related to the projects are summarized as follows:

		Branch Office Expansion		Computer System Upgrade		ATM Kiosk Expansion
Amount to be invested		$522,150		$334,860		$193,892
Annual net cash flows:
	Year 1	267,000		182,000		125,000
	Year 2	248,000		164,000		86,000
	Year 3	227,000		146,000		63,000

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 15%, prepare a net present value analysis for each project. 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.

	Branch Office Expansion	Computer System Upgrade	ATM Kiosk Expansion
Present value of net cash flow total	$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 project. If required, round your answers to two decimal places.

	Present Value Index
Branch Office Expansion	fill in the blank 10
Computer System Upgrade	fill in the blank 11
Install Internet Bill-Pay	fill in the blank 12

3. Which project offers the largest amount of present value per dollar of investment?

ATM Kiosk ExpansionBranch Office ExpansionComputer System UpgradeATM Kiosk Expansion