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

Line Item Description	Des Moines	Cedar Rapids
Total present value of net cash flow	$284,550	$302,680
Amount to be invested	(271,000)	(322,000)
Net present value	$13,550	$(19,320)

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

Line Item Description	Des Moines	Cedar Rapids
Total present value of net cash flow	$fill in the blank 1	$fill in the blank 2
Amount to be invested	fill in the blank 3	fill in the blank 4
Present value index	fill in the blank 5	fill in the blank 6

b. Which location does your analysis support? (If both present value indexes are the same, either location will grade as correct.)

Des MoinesCedar Rapids

, because the net present value index is

less thangreater than

1.