Exercise 16-7 Using the present value index LO 16-2 Drinkwater Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $100,000 and $80,000, respectively. The present value of cash inflows and outflows for the second alternative is $240,000 and $210,000, respectively. Required a. Calculate the net present value of each investment opportunity. b. Calculate the present value index for each investment opportunity. (Round your answers to 2 decimal places.) c. Indicate which investment will produce the higher rate of return. Alternative 1 Alternative 2