Question: help Net Present Value Method, Present Value Index, and Analysis United Bankshores, Inc. wishes to evaluate three capital investment proposals by using the net present


Net Present Value Method, Present Value Index, and Analysis United Bankshores, Inc. wishes to evaluate three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Branch Computer Install Office System Internet Expansion Upgrade Bill-Pay Amount to be invested $589,191 $433,240 $216,647 Annual net cash flows: Year 1 317,000 228,000 146,000 Year 2 295,000 205,000 101,000 Year 3 269,000 182,000 73,000 Present Value of $1 at Compound Interest: Year 6% 10% 12% 15% 20% 0.943 0.893 0.909 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
