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How to determine the present value index for each proposal

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Reference no: EM132537464

The net present value for Proposals X and Y has been calculated on the basis of the data given below.

                                                  Proposal X                  Proposal Y

Amount to be invested                       $145,000                     $280,000

Total present value of net cash flow       172,000                       320,000

Net present value                                   27,000                         40,000

Question 1: How to Determine the present value index for each proposal. Round your answers to two decimal places.

Reference no: EM132537464

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