i dont understand what numbers i should be using. please help me understand.

Present Value Index When funds for capital investments are limited, projects can be ranked using a present value index. A project with a negative net present value will have a present value index below 1.0. Also, it is important to note that a proje with the largest net present value may, in fact, return a lower present value per dollar Invested. Let's look at an example of how to determine the present value index. The company has a project with a 5-year life, an initial investment of $220,000, and is expected to yield annual cash flows of $56,500. Whathat is the present value index of the project if the required rate of return is set at Total present value of net cash flows Present value index Initial investment Calculation Steps Vote: Round total present value of net cash flows and initial investment to nearest dollar. Round present value index to two decimal places. $ 254,250 X Present value index = $220,000 Check My Work To calculate the total present value of net cash flows, find the correct present value discount factor. Then multiply it by the annual cash flow for the project. Part Four Internal Rate of Return Method The internal rate of return (IRR) method uses present value concepts to compute the rate of return from a capital Investment proposal based on its expected net cash flows. This method, so sted rate of return method, starts with the proposal's net cash flows and works backward to estimate the proposal's expected rate of return. Let's look at an example of Internal rate of return calculation with even cash flows. A company has a project with a 4-year life, requiring an Initial investment of $179,900, and is expected to yield annual cash flows of $58,000. What is the internal rate of return? IRR Factor Investment Annual cash flows "IRR Factor: This is the factor which binvestment. This is the nrecent CAnnual Cash Flowes Check My Work Next ) All work saved. Email Instructor Save and Exit Submit Assignment for Grading