Calculate the present value index for each alternative

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A. NPV of the vans investment: $182,658.08

B. The profitability index for the trucks investment: 1.18

Year 1 $175,000

Year 2 $375,000

Year 3 $450,000

Year 4 $500,000

Round your computations to two decimal points.

Question A. Determine the net present value of the two investment alternatives

Question B. Calculate the present value index for each alternative

Question C. Indicate which investment alternative you would recommend. Explain your choice

Reference no: EM132654960

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