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The present value index for this investment is: a. .88 b. 1.45 c. 1.14 d. .70 The management of California Corporation is considering the purchase

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The present value index for this investment is:

a. .88

b. 1.45

c. 1.14

d. .70

The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation

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