b

Net Present Value Method, Present Value Index, and Analysis for a Service Company Continiental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data felated to the proposals are summarized as follows: 1. Assuming that the dequred 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 sig to indicate a negative net present yalue. If required, round to the nearest dollar. 2. Determine a present value index for each proposel, If required, round your answers to two decimal places. 3. The has the largest present value inde'. Atthough hos the largest ret piesent value, it retuins less present yalue per dollar inverted than does the 1. As fevealed to the present value indexes. The present value index for the is less than 1 , indicating that it