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6 Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: 33 oints

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6 Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: 33 oints 8 04:10.30 Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project Project $135,000 5 0 $135,000 5. 25,000 $ 63,000 $9,800 $ 6 years 6 years ook References The working capital needed for project will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 17% Required: 1. Compute the net present value or Project A. (Enter negative values with o minus sign. Round your final answer to the nearest whole dollar amount.) 2. Compute the nel present value of Project B. (Enter negative values with o 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 2 Net present value project Not present value project B Which investment alternative to thor) would you recommend this the company accept? 3

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