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4 Perit Industries has $155,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are Project A
4 Perit Industries has $155,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are Project A Project B $155, 000 Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project 0 $155,000 $ 25,000 57,000 $ 9,600 $ Print 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 15%. Click here to view Exhibit 128-1 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 projectA 2. Net present value project B 3. Which investment alternative (if either) would you recommend that the accept
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