Question: Please help with this! This is a sample question that is similar to ones I will see on my exam. A quick answer will be

 Please help with this! This is a sample question that is

Please help with this! This is a sample question that is similar to ones I will see on my exam. A quick answer will be greatly appreciated.

similar to ones I will see on my exam. A quick answer

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: Branch Computer Install Office System Internet Expansion Upgrade Bill-Pay Amount to be invested $762,994 $591,414 $281,481 Year 1 369,000 273,000 173,000 Year 2 343,000 246,000 119,000 Year 3 314,000 218,000 87,000 Annual net cash flows: Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 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 8 0.627 0.467 0.404 0.327 0.233 9 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 10%, 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. Branch Office Computer System Install Internet BillExpansion Upgrade Pay 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 Branch Office Expansion Computer System Upgrade Install Internet Bill-Pay

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