Question: please help:)) Network Net Present Value Method, Present Value Index, and Analysis for a service company Continental Railroad Company is evaluating three capital investment proposals

please help:))
please help:)) Network 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

Network 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 Ramp Computer Equipment Facilities Amount to be invested $1,026,939 $625,528 $312.059 Annual net cash flows 397,000 282,000 183,000 369,000 337,000 226,000 92,000 Year Year 2 254,000 126,000 Year 3 Year 1 2 3 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.826 0.797 0.756 0.694 0.840 0.751 0.712 0.658 0.579 0,792 0.68 0.636 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0.507 0.432 0.335 0.665 0.513 0.452 0.376 0.279 4 5 6 7 0.627 0.467 0.233 0.404 0.361 0.327 0.284 9 0.592 0.424 0.1941 10 0.558 0.386 0.322 0.247 0.162 Required: Required: 1. Assuming that the desired rate of retum 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. Maintenance Equipment Ramp Facilities Computer Network Total present value of net cash flow 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 has the largest present value Index. Although has the largest net present value, it returns les 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. ugh has the largest net present value, it returns less present value per present value indexes. The present value index for the N an 1, maintenance equipment ramp facilities computer network

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!