Calculate net present value of each investment opportunity

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Question - Stuart Company has a choice of two investment alternatives. The present value of cash inflows and outflows for the first alternative is $200,000 and $162,000, respectively. The present value of cash inflows and outflows for the second alternative is $375,000 and $300,000, respectively.

Required -

a. Calculate the net present value of each investment opportunity.

b. Calculate the present value index for each investment opportunity.

Reference no: EM132561811

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