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	$787,740		$519,976		$288,363
Annual net cash flows:
	Year 1	366,000		260,000		154,000
	Year 2	340,000		234,000		106,000
	Year 3	311,000		208,000		77,000

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 12%, 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	$fill in the blank 1		$fill in the blank 2		$fill in the blank 3
Amount to be invested	fill in the blank 4		fill in the blank 5		fill in the blank 6
Net present value	$fill in the blank 7		$fill in the blank 8		$fill in the blank 9

2. Determine a present value index for each proposal. Round your answers to two decimal places.

	Present Value Index (Rounded)
EZ Expansion	fill in the blank 10
Notorious Facilities	fill in the blank 11
Short Network	fill in the blank 12

3. The

EZ ExpansionNotorious FacilitiesShort Network

has the largest present value index. The

EZ ExpansionNotorious FacilitiesShort Network

has the lowest net present value and it returns

morelessthe same

present value per dollar invested than

does the EZ Expansiondoes the Notorious Facilitiesboth the EZ and Notorious Facilities

, as revealed by the present value indexes. The present value index for the

EZ ExpansionNotorious FacilitiesShort Network

is less than 1, indicating that it does not meet the minimum rate of return standard.