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Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided below. Year Investment A Investment B 0 $(19,250) $(14,100) 1 6,530 6,530
Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided below. Year Investment A Investment B 0 $(19,250) $(14,100) 1 6,530 6,530 2 6,530 5,360 3 6,530 4 5,360 4,870 3,040 The company's hurdle rate is 10%. What is the present value index of Investment B? Use Appendi Table.1. (Do not round your intermediate calculations. R Multiple Choice 1.08 O O 1.00 114 None of these answers is correct
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