Present Value Index Montana Grill has computed the net present value for capital expenditures for the Billings and Great Falls locations using the net present value method. Relevant data related to the computation are as follows: Billings Great Falls Total present value of net cash flow $256,680 $354,240 Amount to be invested 276,000 328,000 a. Determine the present value index for each proposal. Round to two decimal places. Present Value Index Billings Location Great Falls Location b. If Montana Grill can fund only one location, which location should be funded?

Present Value Index Montana Grill has computed the net present value for capital expenditures for the Billings and Great Falls locations using the net present value method. Relevant data related to the computation are as follows: Billings Great Falls Total present value of net cash flow $256,680 $354,240 Amount to be invested 276,000 328,000 a. Determine the present value index for each proposal. Round to two decimal places. Present Value Index Billings Location Great Falls Location b. If Montana Grill can fund only one location, which location should be funded?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.12E

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