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3 Homework problems Saved Help $ Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life

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3 Homework problems Saved Help $ Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project A Project B $190,000 $ $190,000 $ 28,000 $ 48,000 $ 8,900 $ 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Indust es discount rate is 15% Click here to view Exhibit 138.1 and Exhibit 138-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative values 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 values 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 Net present value project B 2

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