Net Present Value Method, Present Value Index, and Analysis United Bankshores, Inc. wishes to evaluate three capital investment proposals by using the net present value method. Relevant data related to the proposals are summarized as follows: Install Branch Computer Internet Office System Upgrade Bill-Pay Expansion $871,864 $566,953 $289,817 Amount to be invested Annual net cash flows: 372,000 272,000 167,000 Year 1 Basic Calculator 115,000 Year 2 346,000 245,000 Year 3 316,000 218,000 84,000 BS CE C Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 4 5 6 0.943 0.909 0.893 0.870 0.833 1 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.194 10 0.558 0.386 0.322 0.247 0.162 Required: 1. Assuming that the desired rate of return is 6 % , 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 Basic Calculator Branch Office Computer System Install Internet Bill- Expansion Upgrade Pay Present value of net cash flow total BS CE Amount to be invested 7 Net present value 4 2. Determine a present value index for each proposal. If required, round your answers to two decimal places 0 Present Value Index Branch Office Expansion Computer System Upgrade Install Internet Bill-Pay 3. Which proposal offers the largest amount of present value per dollar of investment