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 summarized as follows: 1. Assuming that the desired rate of return is 12%, prepare a net present value analysis for each proposal. Use the present value of exist1 table appearing in this chapter (Exhibit 2). 2. Determine a present value index for each proposal. Round to two decimal places

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