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 Ramp Facilities Computer Network Amount to be invested $796,190 $490,721 $233,986 Annual net cash flows: Year 1 400,000 276,000 168,000 Year 2 Year 3 372,000 248,000 116,000 340,000 221,000 84,000