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 using the net present value method, Relevant data related to the propesals are summarized as follows: 1. Assuming that the desired rate of return is 12%, prepare a net present value analyss for each proposal. Use the present value of 11 tasit above. if mournd, use the minus sign to indicate a negative net present value. If required, round to the neareat dellar. 2. Determine a present value index for each proposal. if required, round your answers to twe decimal places. 3. The dollar invested than does the has the largest present value index. Although Thas the targest net present value, it recurns less present value per indicating that it does not meet the minimum rate of return standard
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