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Net Present Value Method, Present Value tndex, and Analysis for a service company Continental Railroad Company is evaluating three capital irwestment proposals by using the

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Net Present Value Method, Present Value tndex, and Analysis for a service company Continental Railroad Company is evaluating three capital irwestment proposals by using the net present value method, Relevant data related to the proposals are summarized as follows: 1. Aswming that the desired rite of return is 6%, prepare a net present value analysis for each proposat. 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. 2. Determine a present value index for each proposal, if required, round your answers to two decimal places. 3. The has the largest present value index. Athough has the largest net preserv 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 is less than 1 , indicating that it does not meet the minimum rate of retum standard

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