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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

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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. Relevant data related to the proposals are summarized as follows: Computer Network $186,316 Maintenance Ramp Equipment Facilities $394,683 $635,864 Amount to be invested Annual net cash flows: 134,000 92,000 67,000 218,000 196,000 174,000 326,000 303,000 277,000 Year 1 Year 2 Year 3 Present Value of1 at Compound Interest 10% 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 0.7120.658 0.579 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.5670.497 0.402 0.705 0.564 0.507 0.432 0.335 Year 690 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.5130.452 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 5 orig Required: so 1. Assuming that the desired rate of return is 20%, 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 . ct A Ramp Facilities Computer Network Maintenance Equipment -Un Present value of net cash flow total Amount to be invested Net present value origin s. Pro sold ct 1 c ich pr 2. Determine a present velue index for each proposal. If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Ramp Facilities Computer Network

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