Question: First United Bank Inc. is evaluating three capital investment projects by using the net present value method. Relevant data related to the projects are summarized

First United Bank Inc. is evaluating three capital investment projects by using the method. Relevant data related to the projects are summarized as follows:

Instructions
1. Assuming that the desired rate of return is 15%, prepare a net present value analysis for each project. Use the present value of $ 1 table appearing in this chapter (Exhibit 1).
2. Determine a present value index for each project. Round to two decimal places.
3. Which project offers the largest amount of present value per dollar of investment?Explain.

Computer System ExpansionUpgrade Expansion Branch Office ATM Kiosk Annual net cash flows 200,000 160,000 160,000 190,000 275000 180,000 250000 17 0,000 250,000

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