26.13

Present Value Index 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 Total present value of net cash flow Amount to be invested Net present value $321,180 (303,000) Cedar Rapids $335,730 (361,000) $(25,270) $18,180 a. Determine the present value index for each proposal. Round your answers for the present value index two decimal places. Des Moines Cedar Rapids