Exercise 16-7A (Algo) Using the present value index LO 16-2 Solomon Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $195,000 and $160,000, respectively. The present value of cash inflows and outflows for the second alternative is $370,000 and $297,500, respectively. 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