Drinkwater Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $81,000 and $75,400, respectively. The present value of cash inflows and outflows for the second alternative is $220,000 and $212,000, respectively.

Required a. Calculate the net present value of each investment opportunity.

	net present value
alternative 1
alternative 2

b. Calculate the present value index for each investment opportunity. (Round your answers to 2 decimal places.)

	present value index
alternative 1
alternative 2

c. Indicate which investment will produce the higher rate of return. A- Alternative 1 B- Alternative 2