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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, 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 as follows: Maintenance Ramp Computer Equipment Facilities Network Amount to be invested $700,518 $494,500 $231,979 Annual net cash flows: Year 1 Year 2 Year 3 319,000 297,000 271,000 236,000 212,000 189,000 147,000 101,000 74,000 Present Value of $1 at Compound Interest Year696 1096 1290 1596 2000 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.7560.694 0.840 0.751 0.712 0.658 0.579 792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 070.4320.335 . 3 0.705 0.564 0.5
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