Question: Using the present value index Alonso Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first

Using the present value index Alonso Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $90,000 and $84,000, respectively. The present value of cash inflows and outflows for the second alternative is $220,000 and $213,000, respectively.
Required
a. Calculate the of each investment opportunity.
b. Calculate the present value index for each investment opportunity.
c. Indicate which investment will produce the higher rate of return.

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