Present Value Index

Dip N Dunk Doughnuts has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows:

	Ft. Collins		Boulder
Total present value of net cash flow	$211,860		$217,120
Amount to be invested	(198,000)		(236,000)
Net present value	$13,860		$(18,880)

a. Determine the present value index for each proposal. Round your answer for the present value index to two decimal places.

	Ft. Collins	Boulder
Total present value of net cash flow	$	$
Amount to be invested	$	$
Present value index