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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 the

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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 the net present value method. Relevant data related to the proposals are summ follows: Maintenance Ramp Computer Equipment Facilities Network Amount to be invested $919,189 $588,460 $303,105 Annual net cash flows: Year 1 443,000 320,000 200,000 Year 2 412,000 295,000 144,000 Year 3 377.000 262,000 104,000 2 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 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 6 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.361 0.284 0.194 4 3 0.840 0.751 0.658 0.579 0.572 0.482 0.712 0.636 0.567 0.507 0.452 0.402 0.335 4 0.792 5 0.747 6 0.705 2 0.665 0.627 9 0.592 10 0.558 Required: 0.683 0.621 0.564 0.513 0.467 0.424 0.306 0.497 0.432 0.376 0.327 0.284 0 0.404 0.361 0.279 0.233 0.194 0.162 0.322 0.242 1. Assuming that the desired rate of return is 20%, prepare a ne 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 Niet 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 ietwork

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