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took Pem Net present value method, present value index, and analysis for a service company Continental Railroad Company is evaluating three capital investment proposals
took Pem 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 Facilities Computer Equipment Network Amount to be invested $643,575 $376,292 $182,433 Annual net cash flows Year 1 264,000 177,000 108.000 Year 2 246,000 159,000 75,000 Year 3 224,000 142,000 54,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 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 0.7921 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 B 0.627 0.457 0.404 9. 0.592 0.424 0.361 0.327 0.233 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: each the the present vase of $1 table above. Its use the minua sign to indicate a negove net present
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