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	$607,600		$624,000
Amount to be invested	(620,000)		(600,000)
Net present value	$(12,400)		$ 24,000

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