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:

	Ft. Collins	Boulder
Total present value of net cash flow	$607,600		$624,000
Less amount to be invested	620,000		600,000
Net present value	$(12,400)		$ 24,000

a. Determine the present value index for each proposal. Round your answer for the present value index to two decimal places.

	Ft. Collins	Boulder
Total present value of net cash flow	$	$
Amount to be invested	$	$
Present value index

b. Which location does your analysis support?