United Bankshores, Inc. wishes to evaluate three capital investment projects by using the net present value method. Relevant data related to the projects are summarized as follows:

Instructions1. Assuming that the desired rate of return is 15%, prepare a net present value analysis for each project. Use the present value of $1 table appearing in this chapter.2. Determine a present value index for each project. Round to two decimal places.3. Which project offers the largest amount of present value per dollar ofinvestment?

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Branch Office Computer System Upgrade Install Internet Bill-Pay Expansion Amount to be invested. Annual net cash flows: Year 1 Year 2 Year 3 $700,000 $475,000 $280,000 350,000 325,000 300,000 250,000 225,000 160,000 110,000 80,000 200,000