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Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided below Year Investment A Investment B $ (16,750) 5,540 5,540 5,540 4,480

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Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided below Year Investment A Investment B $ (16,750) 5,540 5,540 5,540 4,480 $ (10,880) 5,540 4,480 3,660 1,470 4. The company's hurdle rate is 12%. What is the present value index of Investment B? Use Appendix Table 1 (Do not round intermediate calculations.Round your answer to two decimal points.) Multiple Choice 1.03 112 1.00 None of these answers is correct TABLE 1 PRESENT VALUE OF $ 10% 12514% 16% 20% 0961538 0952381 094396 0934579 0925926 0.917431 0.909091 0.892857 2 0.924556 0877193 086 0907029 0.889996 0873439 0857339 0841680 0826446 0797194 0769468 0743163 0694444 816298 0793832 0772183 0751315 0711780 0674972 0640658 0578704 40854804 0822702 0792094 0762895 0735030 0708425 0683013 0635518 0592080 5 0821927 0783526 0747258 0712986 0680583 0649931 0620921 0567427 0519369 0476113 0.4018 6 0790315 0746215 0704961 0666342 70759918 010681 0665057 0622750 0583490 0547034 0513158 0452349 0399637 0.353830 0279082 8 0730690 0676839 0627412 0582009 0540269 0.501866 0.466507 0403883 9 0202587 0644609 0591898 0543934 0500249 0.460428 0424098 0360610 0307508 0262953 0630170 0596267 0564474 0506631 0455587 0.410442 0334898 0.350559 0:305025 0232568 10 0.675564 0.613913 0558395 0649581 0584679 0526788 0.475093 0428883 0387533 0350494 0287476 0236617 0195417 0134588 0508349 0463193 0422110 385543 0321973 026974 0226684 01150 12 0524597 0558837 0496969 0444012 0.397114 0355535 0318631 0256675 0207559 0168463 02157 0530321 0468839 0414964 0367698 0326179 0289664 0229174 0182069 0145227 0093464 4 0.577475 0505068 0442301 0387817 340461 0299246 0.263331 0 204620 015970 0125195 0077887 5 0555265 0.48017 0417265 0362446 0315242 0274538 0239392 0182696 0140096 0107927 0064905 6 0533908 0458112 0393646 0.338735 0291890 0251870 0217629 0163122 0122892 0093041 0054088 17 0513373 0436297 0371364 0316574 0270269 0231073 0197845 0145644 0507800 0080207 0045073 18 0493628 0.415521 0.350344 0295864 0250249 0211994 0179859 0130040 0094561 0069144 0037561 19 0474642 0.395734 0330513 0276508 0231712 0194490 016350 0116107 0082948 0059607 0031301 20 0456387 037688931 214548 017843 148644 00 7 0 7 , ENTER 4

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