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Campbell Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $145,000 and
Campbell Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $145,000 and $108,000, respectively. The present value of cash inflows and outflows for the second alternative is $320,000 and $272,500, respectively. Required a. Calculate the net present value of each investment opportunity. (Negative amounts should be indicated by a minus sign.) b. Calculate the present value index for each investment opportunity. (Round "PVI" to 2 decimal places.) c. Indicate which investment will produce the higher rate of return. Alternative 1 (NPV) Alternative 2 (NPV) b. Alternative 1 (PVI) Alternative 2 (PVI) c. The investment that will produce the higher rate of return is
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