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 Ramp Computer Equipment Facilities Network Amount to be invested $1,068,881 $673,825 $337,950 Annual net cash flows: 443,000 Year 1 323,000 204,000 141,000 Year 2 412,000 291,000 Year 3 377,000 258,000 102,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 1 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 0.792 0.683 0.636 0.572 0.482 0.402 0.747 0.621 0.567 0.497 6 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 7 0.627 0.467 8 0.404 0.327 0.233 0.361 0.194 9 0.592 0.424 0.284 10 0.558 0.386 0.322 0.247 0.162 Required: 1. Assuming that the desired rate of return is 10%, 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. Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow Amount to be invested Net 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 Ramp Facilities Computer Network 3. The has the largest net present value, it has the largest present value index. Although returns less present value per dollar invested than does the as revealed by the present value indexes. The is less than 1, indicating that it does not meet the minimum rate of return present value index for the standard