i need help into solving the problem. can someone please explain it to me? thank you
Present Value of $1 at Compound Interest Year 6% 1096 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 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 B 0.627 0.467 0.404 0.327 0.233 g 0.592 0.424 0.194 0.361 0.322 0.284 0.247 10 0.558 0.386 0.162 Required: 1. Assuming that the desired rate of return is 15%, prepare a net present value analysis for each proposal. Use the present value of $1 table above. If required, use the nearest dollar. Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow Amount to be invested Net present value 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 computer network has the largest present value index. Although ramp facilities has the largest net present value, it returns less present value pe present value indexes. The present value index for the maintenance equipment is less than 1, indicating that it does not meet the minimum rate of return stand Check My Work 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 retum is 15%, prepare a net present value analysis for each proposal. Use the present value of $1 table above. If required, us the nearest dollar. Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow Amount to be invested Net present value 2. Determine a present value index for each proposal. If required, round your answers to two decimal places. Present Value Index Check My Work 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 proposal. Use the p the nearest dollar. Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow Amount to be invested Net present value $1 table above. If required, use the minus sign to indicate a negative net present value. If required, round to Continental Railroad Company is evaluating three capital investment proposals by using the net present value many Maintenance Equipment Ramp Facilities Computer Network Amount to be invested $846,217 $482,013 Annual net cash flows: $242,530 Year 1 377,000 162,000 Year 2 351,000 253,000 228,000 202,000 Year 3 320,000 112,000 81,000
