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 Equipment Ramp Facilities Computer Network Amount to be invested $8,000,000 $20,000,000 $9,000,000 Annual net cash flows Year 1 4,000,000 12,000,000 6,000,000 Year 2 3,500,000 10,000,000 5,000,000 2,500,000 9,000,000 4,000,000 Year 3 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20 I 0.943 0,909 0.893 0.670 0.833 2 0.00 0.526 0.797 0.756 0.694 . 0840 0.751 0.712 0.65 0.579 4 6:792 0.63 0.036 0.572 0.482 0.747 0.421 0.367 0.497 0.402 0.205 0.564 0.507 0.432 0.335 0313 0.452 0376 0.279 AM 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.306 0.322 0.247 0.162 Required: 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 Present value of net cash flow total Maintenance Equipment Ramp Facilities Computer Network Less amount to be invested tiet present value 2. Determine a present value index for each proposal. If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Bamp Facities Computer Network 3. The has the largest present value Index. Although has than does the as revealed by the present value indexes. The present value index for the the largest net present value, it returns less present value per dollar invested is less than 1, indicating that it does not meet the minimum rate of return standard