Part Three 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 project with the largest not present value may, In fact, return a lower present value per dollar invested. Let's look at an exam how to determine the present value indes. The company has a proje Your life, an initial investment of $170,000, and is expected to yield annual cash flows of $59,500 Whathat is the prese ndex of the project if the required rate of return is set at 8 7 Total present value of net cash flows Present value index Initial Investment Calculation Scaps Note: Round total present value of net cash flows and initial investment to nearest dollar, Round present value indes to ino decimal Present value Indes