Net Present Value Method, Present Value Index, and Analysis

West Coast Industries Inc. wishes to evaluate three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows:

		EZ Expansion		Notorious Facilities		Short Network
Amount to be invested		$834,046		$569,170		$312,211
Annual net cash flows:
	Year 1	436,000		323,000		187,000
	Year 2	405,000		291,000		129,000
	Year 3	371,000		258,000		94,000

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	0.890	0.826	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
5	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	0.452	0.376	0.279
8	0.627	0.467	0.404	0.327	0.233
9	0.592	0.424	0.361	0.284	0.194
10	0.558	0.386	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 project. Use the present value of $1 table presented above in your computations. If the net present value is negative, enter a negative amount. EZ Expansion Notorious Facilities Short Network Total present value of net cash flow Amount to be invested Net present value $ 2. Determine a present value index for each proposal. Round your answers to two decimal places. Present Value Index (Rounded) EZ Expansion Accounting numeric field Notorious Facilities Short Network