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

Present Value Index

Maintenance Equipmentfill in the blank 10Ramp Facilitiesfill in the blank 11Computer Networkfill in the blank 12

3. The

maintenance equipmentramp facilitiescomputer network

has the largest present value index. Although

maintenance equipment ramp facilities computer network

has the largest net present value, it returns less present value per dollar invested than does the

maintenance equipment ramp facilities computer network

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

maintenance equipment ramp facilities computer network

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

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: Present Value of $1 at Compound Interest the nearest dollar. Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow Amount to be invested Net present value $