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milrn/takeAssignment/takeAssignmentMain.do?invokerwassignments&takeAssignmentSessionLocator wassignment-take&inprogress f... * eBook Calculator Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railroad Company is evaluating three

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milrn/takeAssignment/takeAssignmentMain.do?invokerwassignments&takeAssignmentSessionLocator wassignment-take&inprogress f... * eBook Calculator Net Present Value Method, Present Value Index, and Analysis for a service company 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 Ramp Computer Equipment Facilities Network Amount to be invested $806,579 $504,078 $258,498 Annual net cash flows: 367,000 250,000 165,000 Year 2 341,000 225,000 114,000 Year 3 312,000 200,000 83,000 Year 1 Year 3 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.755 0.694 0 .840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 Previous Check My Work eBook Calculator 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 minus sign to indicate a negative net present value. If required, round to the nearest dollar Maintenance Equipment Ramp Facilities Computer Network Present value of net cash flow total $_ 785,441 X Amount to be invested Net present value

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