Question: 2. Determine a present value index for each proposal. If required, round your answers to two decimal places Net present value method, present value index,

Net present value method, present value index, and analysis for a service

2. Determine a present value index for each proposal. If required, round your answers to two decimal places

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 Equipment Ramp Facilities Computer Network Amount to be invested Annual net cash flows: Year 1 Year 2 Year 3 Present Value of $1 at Compound Interest Yea r 0.890 0.840 0.792 O. 747 0.705 0.665 0.627 0.592 0.558 Required: o. gog 0.826 0.751 0.583 0.521 0.564 0.513 0.467 0.424 0.386 o.8g3 o.7g7 0.712 0.635 0.567 0.507 0.452 0.404 0.361 0.322 15% 0.870 0.756 0.658 0.572 0.497 0.376 0.327 0.284 0.247 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.152 1. Assuming that the desired rate of return is 20%, prepare a net present value analysis for each proposal. 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. Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow Less amount to be invested Net present value 2. Determine a present value index for each proposal. If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Ramp Facilities Computer Network that it does not meet the minimum rate of return standard. , as revealed by the present value indexes. The present value index for is less than I , indicating

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