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Calculate present value index for investment opportunity

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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

Question A. Calculate the net present value of each investment opportunity. (Negative amounts should be indicated by a minus sign.)

Question B. Calculate the present value index for each investment opportunity. (Round "PVI" to 2 decimal places.)

Question C. Indicate which investment will produce the higher rate of return.

Reference no: EM132461879

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