Hot on the Spot Doughnuts has computed the net present value for capital expenditure locations A and

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Hot on the Spot Doughnuts has computed the net present value for capital expenditure locations A and B, using the net present value method. Relevant data related to the computation are as follows:

Determine the present value index for each proposal.

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Survey of Accounting

ISBN: 978-0538749091

5th Edition

Authors: Carl S Warren

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Question Posted: Oct 21, 2011 05:18 AM

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Hot on the Spot Doughnuts has computed the net present value for capital expenditure locations A and

Question:

Location B $396,096 412,600 Location A $371,290 Total present value of net cash flow Amount to be invested 347,000 $ (24,290) Net present value $ (16,504)

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