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Net Present Value Method, Present Value Index, and Analysis for a Service Company First United Bank Inc. is evaluating three capital investment projects by using

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Net Present Value Method, Present Value Index, and Analysis for a Service Company First United Bank Inc. is evaluating three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows: Branch Computer ATM Kiosk Office System Expansion Upgrade Expansion Amount to be invested 5420,000 $350,000 $520,000 Annual net cash flows: Year 1 200,000 190,000 275,000 Year 2 160,000 180,000 250,000 Year 3 160,000 170,000 250,000 Year 1 2 3 4 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.825 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.375 0.279 0 527 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 0.558 0.386 0.322 0.247 0.152 5 6 7 8 10 UUUU U. UTUL Required: 1. Assuming that the desired rate of return is 15%, prepare a net present value analysis for each project. 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 Branch Office Expansion Computer System Upgrade ATM Kiosk Expansion Present value of net cash flow total: Amount to be invested: Net present value 2. Determine a present value index for each project. If required, round your answers to two decimal places. Present Value Index Branch Office Expansion Computer System Upgrade ATM Kiosk Expansion 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 less than 1. Indicating that does not meet the minimum rate of return standard Check My Work Previous All work saved militar Subt

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