Shenandoah Springs Company is considering two investment opportunities whose cash flows are provided below:YearInvestment A Investment B 0$(15,000) $(9,000) 1 5,000 5,000 2 5,000 4,000 3 5,000 3,000 4 4,000 1,000 The company's hurdle rate is 12%. What is the present value index of Investment B? Use Appendix Table 1. (Do not round your intermediate calculations. Round your answer to two decimal points.)
A. 1.16
B. 1.01
C. 0.86
D. None of these answers is correct.
Answer: A
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