Question: Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Des Moines
Tasty Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows:
| Des Moines | Cedar Rapids | |||
| Total present value of net cash flow | $267,540 | $334,750 | ||
| Amount to be invested | (273,000) | (325,000) | ||
| Net present value | $(5,460) | $9,750 | ||
a. Determine the present value index for each proposal. Round your answers for the present value index to two decimal places.
| 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 |
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