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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
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 follow Maintenance Equipment Ramp Computer Facilities Network Amount to be invested $980,257 $586,550 $289,474 Annual net cash flows: Year 11 437,000 302,000 192,000 Year 21 406,000 272,000 132,000 Year 3 371,000 242,000 96,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.850 0.125 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 S 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 0452 0.376 0.279 0.627 0.467 0.404 0327 0.233 0.592 0.424 0.361 0.284 0.194 10- 0.558 0.386 0.322 0247 0.162 Required
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