Double K Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data

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

a. Determine the present value index for each proposal.
b. Which location does your analysissupport?

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Financial and Managerial Accounting

ISBN: 978-1285078571

12th edition

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

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Question Posted: Jun 27, 2014 03:41 AM

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Double K Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data

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Blue Springs Lees Summit Total present value of net cash flow Less amount to be invested $540,750 $484800 52500 505,000 15750 S2U Net present value

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a Present Value Index Total Present Value of Net Cash Flow Amount t...View the full answer

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