Net Present Value Method, Prescot Value Index, and Analysis for a service company Continental Railroad Company is evaluating three capital investment proposals by using the net present value method olevant data related to the proposals are summarized as follows: Maintenance Ramp Computer Equipment Facilities Network Amount to be invested $961,548 $550,900 9305,320 Annual net cash flows Year 400,000 273,000 192,000 Year 2 379,000 246,000 132.000 Year 347,000 218,000 96,000 Present Value of $1 at Compound Interest 6% 100 129 15% 20% Year 1 0.893 0.943 0.090 0.10 0.900 0.626 0.792 0.070 0.033 0.756 0.694 0.658 0.579 0.572 0.482 3 0.251 4 0.603 0.712 0.636 0.567 5 0.621 0.497 0.402 0.792 0.747 0.705 0.665 6 0.564 0.507 0.432 0.335 0.229 2 0.513 0,452 0.376 Previous Next) Check My Work 0.513 0.452 9 Book Print Item 7 0.665 0.376 0.279 8 0.627 0.467 0.404 0.327 0.233 0.592 0.424 0.361 0.284 0.196 10 0.558 0.386 0.322 0.247 0.162 Required: 1. Assuming that the desired rate of return is 12%, prepare a ne 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 Equip pent 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. It required, round your answers to two decimal places. Present Value Index Maintenance Equipment Ramp Facilities Computer Network 3. The computer network has the largest present value Index. Although ramp facilities ? has the largest net present value, it returns less present value per dollar invested than does the computer network as revealed by the present value indexes. The present value index for the Previous Next Check My Work