Fanning Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $$150,000$ and $$110,000,$ respectively. The present value of cash inflows and outflows for the second alternative is $$325,000$ and $$275,000,$ respectively.

Required

a$.$ Calculate the net present value of each investment opportunity. Note: Negative amounts should be indicated by a minus sign.

b$.$ Calculate the present value index for each investment opportunity. Note: Round "PVI" to $2$ decimal places.

c$.$ Indicate which investment will produce the higher rate of return.

$\backslash$table$[[$a$.$ Alternative $1($NPV$)],[$a$.$ Alternative $2($NPV$)],[$b$.$ Alternative $1($PVI$)],[$b$.$ Alternative $2($PVI$)],[$c$.$ The investment that will produce the higher rate of return is$]]$