Question: 9. Present Value Index Dip N' Dunk Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the

9.

9. Present Value Index Dip N' Dunk Doughnuts has computed the net

Present Value Index Dip N' Dunk Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Fort Collins Boulder Total present value of net cash flow $210,490 $268,320 Amount to be invested (217,000) (258,000) Net present value $(6,510) $10,320 a. Determine the present value index for each proposal. Round your answer for the present value index to two decimal places. $ $ Fort Collins Boulder Total present value of net cash flow Amount to be invested Present value index b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.) Fort Collins Feedback

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!