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help plz asap 26 9 Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railrosd Company is evaluating three capital
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Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railrosd Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Required: 1. Assuming that the desired rate of return is 10%, 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. 2. Determine a present value index for each proposal, If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Ramp Facilities Computer Network 3. The has the largest present value index, Nthough has the largest net present value, it returns loss present value per dollar invested than does the , as revealed by the present value indexes. The present value index for the is less than 1. indicating that it does not meet the minimum rate of return standard 26 9
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