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 Equipment Amount to be invested $8,000,000 Ramp Facilities $20,000,000 Computer Network $9,000,000 Annual net cash flows: 1 Year 11 4,000,000 12,000,000 6,000,000 Year 2 3,500,000 10,000,000 5,000,000 Year 3 2,500,000 9,000,000 4,000,000