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Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of
of $1 at 20% Flow Net Cash Flow Flow Net Cash Flow Flow Net Cash Flow
Year 1
Year 2
Year 3
Total
Amount to be invested
Net present value
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Net Present Value Analysis
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Present Value Net Cash Present Value of Net Cash Present Value of Net Cash Present Value of
of $1 at 20% Flow Net Cash Flow Flow Net Cash Flow Flow Net Cash Flow
Year 1 0.833 4,000,000$ 3,332,000$ 12,000,000$ 9,996,000$ 6,000,000$ 4,998,000$
2. Present value index:
Net Present Value Analysis
The computer network has the largest present value index. Although ramp facilities has the largest net
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