eBook Present value index Tasty Doughnuts has computed the net present value for capital expenditure at...

Transcribed Image Text:

eBook Present value index Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Total present value of net cash flow Des Moines Cedar Rapids Amount to be invested Net present value $292,520 $324,480 (284,000) (338,000) $8,520 $(13,520) a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places. Total present value of net cash flow < Amount to be invested Des Moines Cedar Rapids $ Present value index b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.) 1. because the net present value index is eBook Present value index Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Total present value of net cash flow Des Moines Cedar Rapids Amount to be invested Net present value $292,520 $324,480 (284,000) (338,000) $8,520 $(13,520) a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places. Total present value of net cash flow < Amount to be invested Des Moines Cedar Rapids $ Present value index b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.) 1. because the net present value index is