Net Present Value Method Present Value Index And Analysis For A Service Company Continental Railroad Company Is Evalua 1 (44.82 KiB) Viewed 34 times
Net Present Value Method Present Value Index And Analysis For A Service Company Continental Railroad Company Is Evalua 2 (30.79 KiB) Viewed 34 times
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 Computer Equipment Facilities Network Amount to be invested $785,780 $505,315 $261,686 Annual net cash flows: Year 1 336,000 242.000 155,000 Year 2 218.000 107,000 312,000 280000 Year 3 194,000 78,000 Year 1 2 0.79% 3 Present Value of $1 at Compound Interest 6% 10% 12% 15% 20% 0.943 0.909 0.893 0.870 0.833 0.890 0.925 0.755 0.694 0940 0.751 0.712 0.658 0.570 0.792 0.635 0.572 0.482 0.747 0.621 0.567 0.497 0.402 0.705 0.564 0,507 0,432 0335 0.565 0.512 04452 0.376 4 0,683 3 0.220 Check My Work AN
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. Maintenance Equipment 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. If required, round your answers to two decimal places. Present Value Index Maintenance Equipment Ramp Facilities Computer Network
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