Question: Net present value method, present value index, and analysis for a service company Continental Railroad Company is evaluating three capital investment proposals by using the

Net present value method, present value index, and analysis for a

Net present value method, present value index, and analysis for a service company Continental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals are summary follows; 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 appearing in this chapter (Exhibit: 2). Determine a present value index for each proposal. Round to two decimal places. Which proposal offers the largest amount of present value per dollar investment? Explain

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