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	$286,900		$380,540
Less amount to be invested	302,000		359,000
Net present value	$(15,100)		$21,540

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

	Carolina	Jersey
Total present value of net cash flow	$fill in the blank 1	$fill in the blank 2
Amount to be invested	$fill in the blank 3	$fill in the blank 4
Present value index	fill in the blank 5	fill in the blank 6

b. Which location does your analysis support?