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	$247,520		$268,850
Amount to be invested	(238,000)		(283,000)
Net present value	$9,520		$(14,150)

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? (If both present value indexes are the same, either location will grade as correct.) , because the net present value index is 1.