Question: Present Value Index Sweet Tooth Candy Company has computed the net present value for capital expenditure at two locations. Relevant data related to the
Present Value Index Sweet Tooth Candy Company has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Carolina Jersey Total present value of net cash flow $214,240 $232,750 Less amount to be invested 206,000 245,000 Net present value $8,240 $(12,250) a. Determine the present value index for each proposal. Round your answer for the present value index to two decimal places. Total present value of net cash flow Amount to be invested i Present value index b. Which location does your analysis support? Carolina Carolina Jersey
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