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Net Present Value Method, Present Value Index, and Analysis for a service company begin{tabular}{cccc} & MaintenanceEquipment & RampFacilities & ComputerNetwork hline Amount to be
Net Present Value Method, Present Value Index, and Analysis for a service company \begin{tabular}{cccc} & MaintenanceEquipment & RampFacilities & ComputerNetwork \\ \hline Amount to be invested & $697,766 & $444,849 & $197,293 \\ Annual net cash flows: & & & \\ Year 1 & 340,000 & 248,000 & 139,000 \\ Year 2 & 316,000 & 223,000 & 96,000 \\ Year 3 & 289,000 & 198,000 & 70,000 \end{tabular} \begin{tabular}{cccccc} \multicolumn{5}{c}{ Present Value of $1 at Compound Interest } \\ \hline Year & 6% & 10% & 12% & 15% & 20% \\ \hline 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 \\ 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 \end{tabular} 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. 3. The has the largest present value index. Although has the largest net present value, it returns less 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
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