How do I compute the excess present value index for each of the five proposals? (Rounding answers to three decimal places). Excess Present Value Index and Average Rate of ReturnA DashboardO BradleLuoddns aHighpoint Company is evaluating five different capital expenditure proposals. The company's hurdle rate for net present value analyses is 12%. A 10% salvage value is expected from each of the investments. Information on the five proposals is as follows:Proposal Required Investment PV at 12% of After-Tax Cash Flows Avg. Annual Net Income from InvestmentA$265,000$305,030$37,400195,000231,78026,000155,000168,04019,200175,000211,30027,600123,000131,99014,960a. Compute the excess present value index for each of the five proposals.Round answers to three decimal places.Proposal Excess PV IndexDEb. Compute the average rate of return for each of the five proposals.Round answers to one decimal place. For example, 0.4567 equals 45.7%Proposal Avg, Rate of Return0 9%0 %0 %0%

Answered: How do I compute the excess present…

How do I compute the excess present value index for each of the five proposals? (Rounding answers to three decimal places).

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.3.1P

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