=+P15-3 Continental Railroad Company wishes to evaluate three capital investment proposals by using Net present value method, the net present value method. Relevant data related to the proposals are summarized as follows!

present value index, and analysis Obj 2 Route Expansion Acquire Railcars New Maintenance Yard Amount to be invested Annual net cash flows:

$830,000 $480,000 $410,000

/ 2. Railcars, 0.97 Year 1 450,000 245,000 215,000 Year 2 400,000 220,000 205,000 Year 3 370,000 190,000 200,000