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: Maintenance Equipment Ramp Facilities Computer Network Amount to be invested $638,832 $414,645 $209,562 Annual net cash flows: Year 1 288,000 Year 2 268,000 196,000 176,000 157,000 135,000 93,000 68,000 Year 3 245,000 Present Value of $1 at Compound Interest 6% 10% 12% 15% Year 20% 0.870 0.833 0.943 0.890 .840 0.909 0.826 0.751 0.893 0.797 0.712 3 0 0.756 0.658 0.572 0.694 0.579 0.792 0.683 0.636 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.279 0.665 0.513 0.452 0.376 0.467 0.233 0.627 0.592 .558 0.424 0.386 0.404 0.361 0.322 0.327 0.284 0.247 0.194 0.162 10 0 Required: 1. Assuming that the desired rate of return is 12%, prepare a net present value analysis for each proposal. 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. Maintenance Equipment Ramp 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. If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Ramp Facilities Computer Network , as revealed by the present 3. The computer network has the largest present value index. Although ramp facilities has the largest net present value, it returns less present value per dollar invested than does the computer network value indexes. The present value index for the maintenance equipment is less than 1, indicating that it does not meet the minimum rate of return standard