Perez Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $$180,000$ and $$154,000,$ respectively. The present value of cash inflows and outflows for the second alternative is $$355,000$ and $$290,000,$ respectively.

$1\mathrm{.}42$

polnts

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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$,]]$

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