Question: Net Present Value Method, present Value Index, and Analysis for a Service Company Continental Rallroad Company is evaluating three capital Investment proposals by using the

 Net Present Value Method, present Value Index, and Analysis for a
Service Company Continental Rallroad Company is evaluating three capital Investment proposals by

Net Present Value Method, present Value Index, and Analysis for a Service Company Continental Rallroad Company is evaluating three capital Investment proposals by using the net present value method. Relevant data related to the proposals are summarized as fe Maintenance Ramp Computer Equipment Facilities Network Amount to be invested $5,000,000 $20,000,000 $9,000,000 Annual net cash now! Year 1 4,000,000 12,000,000 6,000,000 Year 2 3,500,000 10,000,000 5,000,000 Year 2,500,000 9,000,000 4,000,000 Present Value of $1 at Compound Interest Year 69 10% 129 15% 204 1 0.943 0.900 0.893 0.870 0.833 2 0.590 0.26 0.797 0.756 0.694 0.640 0.751 0.712 0.650 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0,402 0.705 0.564 0.507 0432 0.335 7 0.665 0513 0.452 0.376 0.279 0.622 0467 0.404 0.327 0.233 9 0.592 04424 0.361 0.284 0.194 10 OSS 0.322 0.247 0.162 Required: Check My Work UZEE 0.592 0.424 0.361 0.284 0.190 10 0558 0:36 0.247 0.162 Required 1. Assuming that the desired rate of return s. 209, prepares net presente analysis for each propes. Use the present value of $1 ton above required the minus un to ridicate a negative net present value. If required, round to the nearest dollar Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow Less amount to be invested Net present value 2. Determine a present value index for each proposal. If required, round your answers to two decimal places Present Value Index Maintenance Equipment Ramp Facilities Computer Network 3. The computer network has the largest present index. Although ramp facilities has the largest that present value, t returns les present value per dolar invested than does the computer network as revealed by the present value indexes. The present value index for the maintenance equipment V is less than 1, indicating that it does not meet the minimum rate of reuth standard Feat

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