Present Value Index

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	$285,310		$316,800
Less amount to be invested	277,000		330,000
Net present value	$8,310		$(13,200)

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	$__________	$__________