Please show calculations Net Present Value Method, Present...
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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 Facilities Computer Equipment Amount to be invested $663,004 394,982 $189,475 Annual net cash flows: Year 1 Year 2 Year 3 323,000 300,000 275,000 216,000 194,000 173,000 136,000 94,000 68,000 Present Value of $1 at Compound Interest Year 6% 10% 12% 1596 20% 0.943 0.909 0.893 0.870 0.833 756 0.694 30.840 0.75 0.712 .65 0579 2 0.89 0.826 0.797 40.792 0.683 0.636572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 376 0.279 0.233 9.5920424 0.361 40.194 0.162 70.665 0.513 0.452 ledi 0.6270.4670.404 284 10 0.558 0.386 0.322 Required: 1. Assuming that the desired rate of return is 20%, prepare a net present value analysis for each proposal. Use the Check My Work Previous Next All work saved. Save and Exit Submit Assignment for Grading 3 4 6
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