1. Net Present Value Method, Present Value Index, and Analysis

   First United Bank Inc. is evaluating three capital investment projects using the net present value method. Relevant data related to the projects are summarized as follows:

   		Branch Office Expansion		Computer System Upgrade		ATM Kiosk Expansion
   Amount to be invested		$773,199		$584,954		$271,947
   Annual net cash flows:
   	Year 1	354,000		262,000		145,000
   	Year 2	329,000		236,000		100,000
   	Year 3	301,000		210,000		73,000

   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
   7	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 of return is 10%, prepare a net present value analysis for each project. Use the present value of $1 table above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest dollar.

   	Branch Office Expansion	Computer System Upgrade	ATM Kiosk Expansion
   Present value of net cash flow total	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3
   Less amount to be invested:	$fill in the blank 4	$fill in the blank 5	$fill in the blank 6
   Net present value	$fill in the blank 7	$fill in the blank 8	$fill in the blank 9

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

   	Present Value Index
   Branch Office Expansion	fill in the blank 10
   Computer System Upgrade	fill in the blank 11
   Install Internet Bill-Pay	fill in the blank 12

   3. Which project offers the largest amount of present value per dollar of investment?

   ATM Kiosk ExpansionBranch Office ExpansionComputer System Upgrade