Present Value Index Sweet Tooth Candy Company has computed the net present value for capital expenditure at two locations. Relevant data related to the computation are as follows: Carolina Jersey Total present value of net cash flow $330,720 $359,100 Less amount to be invested 318,000 378,000 Net present value $12,720 $(18,900) a. Determine the present value index for each proposal. Round your answer for the present value index to two decimal places. Total present value of net cash flow Amount to be invested Carolina Jersey Present value index b. Which location does your analysis support? Average Rate of Return, Cash Payback Period, Net Present Value Method Cross Country Railroad Inc. is considering acquiring equipment at a cost of $136,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $34,000. The company's minimum desired rate of return for net present value analysis is 12%. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Compute the following: a. The average rate of return, assuming the annual earnings are equal to the net cash flows less the annual depreciation expense on the equipment. If required, round your answer to one decimal place. % b. The cash payback period. years c. The net present value. Use the above table of the present value of an annuity of $1. Round to the nearest dollar. Present value of annual net cash flows Less amount to be invested Net present value