Question: Montana Grill has computed the net present value for capital expenditures for the Billings and Great Falls locations using the net present value method.

Montana Grill has computed the net present value for capital expenditures for

Montana Grill has computed the net present value for capital expenditures for the Billings and Great Falls locations using the net present value method. Relevant data related to the computation are as follows: Total present value of net cash flow. Amount to be invested Billings Great Falls $213,400 $272,480 220,000 262,000 a. Determine the present value index for each proposal, Round to two decimal places. Billings Location Present Value Index Great Falls Location b. If Montana Grill can fund only one location, which location should be funded? Great Falls

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!