eBook Calculator Print Item Net Present Value Method, Present Value Index, and Analysis for a service company Continental Rallroad 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 Ramp Computer Equipment Facilities Network Amount to be invested $804,847 $463,438 $242,702 Annual net cash flows: Year 1 392,000 263,000 176,000 Year 2 365,000 237,000 121,000 Year 3 333,000 210,000 88,000 Year 1 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.694 0.890 0.840 0.792 0.747 0.705 0.665 0.627 9 0 .592 10 0.558 Required: 0.826 0.797 0.751 0.712 0.683 0.636 0.6210.567 0.564 0.507 0.513 0.452 0.467 0.404 0.424 0.361 0.386 0.322 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 ebook Printem Calculator 0.683 0.792 0.636 0.572 0.497 0.482 0.402 0.747 0.621 0.567 0.705 0.432 0.335 0.279 0.376 0.665 0.627 0.564 0.513 0.467 0.424 0.386 0.507 0.452 0.404 0.361 0.322 0.233 0.592 0.327 0.284 0.247 0.194 100.558 0.162 Required: 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 them sign to indicate a negative net present value. If required, round to the nearest dollar Maintenance Equipment Ramp Facilities Computer Network Present value of net cash flow total Amount to be invested Net present value 2. Determine a present value indextor each proposal. If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Ramp Facilities Computer Network 3. The has the largest present value index. Although has the largest net present value, it returns less present value per dollar invested than does the as revealed by the present value indexes. The present value index for the is less than 1, indicating that does not meet the minimum rate of return standard. Check My Work