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 $$655,156$ $$499,690$ $$267,396$

Annual net cash flows:

Year $1303,000209,000142,000$

Year $2282,000188,00098,000$

Year $3258,000167,00071,000$

Present Value of $$1$ at Compound Interest

Year $6\%10\%12\%15\%20\%$

$10\mathrm{.}9430\mathrm{.}9090\mathrm{.}8930\mathrm{.}8700\mathrm{.}833$

$20\mathrm{.}8900\mathrm{.}8260\mathrm{.}7970\mathrm{.}7560\mathrm{.}694$

$30\mathrm{.}8400\mathrm{.}7510\mathrm{.}7120\mathrm{.}6580\mathrm{.}579$

$40\mathrm{.}7920\mathrm{.}6830\mathrm{.}6360\mathrm{.}5720\mathrm{.}482$

$50\mathrm{.}7470\mathrm{.}6210\mathrm{.}5670\mathrm{.}4970\mathrm{.}402$

$60\mathrm{.}7050\mathrm{.}5640\mathrm{.}5070\mathrm{.}4320\mathrm{.}335$

$70\mathrm{.}6650\mathrm{.}5130\mathrm{.}4520\mathrm{.}3760\mathrm{.}279$

$80\mathrm{.}6270\mathrm{.}4670\mathrm{.}4040\mathrm{.}3270\mathrm{.}233$

$90\mathrm{.}5920\mathrm{.}4240\mathrm{.}3610\mathrm{.}2840\mathrm{.}194$

$100\mathrm{.}5580\mathrm{.}3860\mathrm{.}3220\mathrm{.}2470\mathrm{.}162$

Required:

$1.$ Assuming that the desired rate of return is $6\%,$ 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?Net Present Value Method, Present Value Index, and Analysis

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:

Required:

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

Present Value Index

Branch Office Expansion

Computer System Upgrade

Install Internet Bill$-$Pay

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