Question: The net present value for Proposals X and Y has been calculated on the basis of the data given below. Proposal X Proposal Y Amount
The net present value for Proposals X and Y has been calculated on the basis of the data given below.
|
| Proposal X | Proposal Y |
| Amount to be invested | $145,000 | $280,000 |
| Total present value of net cash flow | 172,000 | 320,000 |
| Net present value | 27,000 | 40,000 |
Determine the present value index for each proposal.
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