A company has $100,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternative information is as follows:

	Project A	Project B
Cost of equipment required	$100,000	$0
Working capital investment required	$0	$100,000
Annual cash inflows	$21,000	$16,000
Salvage value of equipment in six years	$8,000	$0
Life of the project	6 years	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 14%.

1. Compute the net present value of Project A.

2. Compute the net present value of Project B.

3. Which investment alternative (if either) would you recommend for the company to accept? Why?