Question
Hot on the Spot Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as
Hot on the Spot Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Mission City Cedar Rapids Total present value of net cash flow $258,240 $336,000 Less amount to be invested 269,000 320,000 Net present value $(10,760) $16,000 a. Determine the present value index for each proposal. Round your answer for the present value index to two decimal places. Mission City Cedar Rapids Total present value of net cash flow $ $ Amount to be invested $ $ Present value index b. Which location does your analysis support?
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