1. Hot on the Spot Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows:

   	Mission City		Cedar Rapids
   Total present value of net cash flow	$174,600		$222,560
   Less amount to be invested	180,000		214,000
   Net present value	$(5,400)		$8,560

   a. Determine the present value index for each proposal. Round your answer for the present value index to two decimal places.

   	Mission City	Cedar Rapids
   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.)