Required:1. Assuming that the desired rate of return is 20%, prepare a net present value analysis for each proposal. Use the present value of $1 table above. If required, use theminus sign to indicate a negative net present value. If required, round to the nearest dollar.Maintenance EquipmentRamp FacilitiesComputer NetworkTotal present value of net cash flow$42$Amount to be investedNet present value$2. Determine a present value index for each proposal. If required, round your answers to two decimal places.Present Value IndexMaintenance EquipmentRamp FacilitiesComputer Network Net Present Value Method, Present Value Index, and Analysis for a service companyContinental Railroad Company is evaluating three capital investment proposals by using the net present value method. Relevant data related to the proposals aresummarized as follows:MaintenanceRampComputerEquipmentFacilitiesNetworkAmount to be invested$622,926$384,010$197,174Annual net cash flows:Year 1313,000216,000138,000Year 2291,000194,00095,000Year 3266,000173,00069,000Present Value of $1 at Compound InterestYear6%10%12%15%20%10.9430.9090.8930.8700.8330.8900.8260.7970.7560.6940.8400.7510.7120.6580.57940.7920.6830.6360.5720.4820.7470.6210.5670.4970.4020.7050.5640.5070.4320.33570.6650.5130.4520.3760.27980.6270.4670.4040.3270.2330.5920.4240.3610.2840.194100.5580.3860.3220.2470.162

Answer 1) Calculation of Net Present Value of each project Net Present value = Present value of net…

Required: 1. Assuming that the desired rate of return is 20%, 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

Required: 1. Assuming that the desired rate of return is 20%, 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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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