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


Net Present Value Method, Present Value Index, and Analysis for a Service Company Continental Railrobd Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals aft summarized as follows: Present Vaiue of $1 at Compound Interest Required: 1. Assuming that the desired rate of retum is 20\%, prepare a net present value analysis for each proposal, Use the present value of s1 table above. If required, ise the minus sign to indicate a negative net present value. If required, round to the nearest dollar. Required! 1. 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 above. If required, use the minus sign to indicate a negative net present value. If required, round to the nearest dollar. 2. Determine a present value index for each proposal. If required, round your answers to two decimal places. 3. The has the targest present value index. Although W has the largest net present value, it returns ies: present value per dollar invested than does the : . as revealed by the present value indexes. The present value index for the is less than 1, indicating that it does not meet the minimum rate of return standard
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