Question: Exercise 10-7A (Algo) Using the present value index LO 10-2 Finch Company has a choice of two investment alternatives. The present value of cash inflows
Exercise 10-7A (Algo) Using the present value index LO 10-2 Finch Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $155,000 and $112,000, respectively. The present value of cash inflows and outflows for the second alternative is $330,000 and $277,500, respectvely Required a. Calculate the net present value of each investment opportunity. (Negative amounts should be indicated by a minus sign.) b. Calculate the present value index for each investment opportunity. (Round "PVI" to 2 decimal places.) c. Indicate which investment will produce the higher rate of return
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