Zachary Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $220,000 and $189,000, respectively. The present value of cash inflows and outflows for the second alternative is $395,000 and $310,000, respectively.

Required

Calculate the net present value of each investment opportunity.

Note: Negative amounts should be indicated by a minus sign.

Calculate the present value index for each investment opportunity.

Note: Round "PVI" to 2 decimal places.

Indicate which investment will produce the higher rate of return.

a. ALternative 1 (NPV)
a. Alternative 2 (NPV)
b. Alternative 1 (PVI)
b. Alternative 2 (PVI)
the investment that will produce the higher rate of return is