Rushforth Manufacturing has $90,000 to invest in either Project A or Project B. The following data are available on these projects:

Both projects will have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere.
Rushforth's required rate of return is 14%.
a. The net present value of Project A is
b. The net present value of Project Bis:

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Project A Project B $90,000 Cost of equipment needed now Working capital investment needed now Annual cash operating inflows Salvage value of equipment in 6 years S40,000 50,000 25,000 29.000 10,000