Benson Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $140,000 and $106,000, respectively. The present value of cash inflows and outflows for the second alternative is $315,000 and $270,000, respectively.

Required

1. Calculate the net present value of each investment opportunity. (Negative amounts should be indicated by a minus sign.)

2. Calculate the present value index for each investment opportunity. (Round "PVI" to 2 decimal places.)

3. Indicate which investment will produce the higher rate of return.