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Drinkwater Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $90, 000 and
Drinkwater Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $90, 000 and $84, 400, respectively. The present value of cash inflows and outflows for the second alternative is $220, 000 and $212, 200, respectively. Required Calculate the net present value of each investment opportunity. Calculate the present value index for each investment opportunity (Round your answers to 2 decimal places.) Indicate which investment will produce the higher rate of return. Alternative 1 Alternative 2
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