# United Bankshores, Inc. wishes to evaluate three capital investment projects by using the net present value method.

## Question:

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?

Net Present ValueWhat is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...

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