Net Present Value Method, Present Value Index, and Analysis Donahue industries Inc. wishes to evaluate three capital investment projects by using the net present Value method. Relevant data related to the projects are summarized as follows: Product Line Expansion Distribution Facilities Computer Network Amount to be invested $785,963 5503,522 $296,135 Annual net cash flows: Year 1 411,000 304,000 181,000 Year 2 382,000 274,000 125,000 Year 3 349,000 243,000 91,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 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 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 2 0.665 0.513 0.452 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 9 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1. Assuming that the desired rate or return is 20%, prepare a net present value analysis for each project. Use the present value of $1 table presented above in your computations. If the net present value is negative, enter a negative amount Product Line Expansion Distribution Facilities Computer Network Present value of net cash flow total Amount to be invested Net present value 2. Determine a present value index for each proposal. Round your answers to two decimal places. Present Value Index (Rounded) Product Line Expansion Distribution Facilities Amount to be invested Net present value 2. Determine a present value Index for each proposal. Round your answers to two decimal places. Present Value Index (Rounded) Product Line Expansion Distribution Facilities Computer Network 3. The distribution facilities has the largest present value index. The computer network has the lowest net present value and it returns less present value per dollar invested than both the product line and distribution facilities as revealed by the present value indexes. The present value index for the computer network is less than 1, indicating that it does not meet the minimum rate or return standard