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17:21 Ok t int ences Haas Trucking Company founded in 1985 provides safe and dependable freight services. Haas has $135,000 to invest in one
17:21 Ok t int ences Haas Trucking Company founded in 1985 provides safe and dependable freight services. Haas has $135,000 to invest in one of the two projects listed below. Cost of equipment required Working capital investment required i Annual cash inflows Salvage value of equipment in six years Life of the project Project A $135,000 Project B $ 0 $ 0 $ 22,000 $135,000 $ 66,000 $ 8,400 6 years $ 0 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. The company's discount rate is 17%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative value with a minus sign. Round your final answer to the nearest whole dollar amount.) 2. Compute the net present value of Project B. (Enter negative value with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (if either) would you recommend that the company accept? 1. Net present value project A 2. Net present value project B Which investment alternative (if either) would you 3. recommend that the company accept?
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