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All three parts please! Perit Industries has $220,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives
All three parts please!
Perit Industries has $220,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B Cost of equipment required $ 220,000 $ 0 Working capital investment required $ $ 220,000 Annual cash inflows $ 31,000 $ 53,000 Salvage value of equipment in six years $ 9,200 $ Life of the project 6 years 6 years The working capital needed for project will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 15% Click here to view Exhibit 148-1 and Exhibit 148-2. 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 procent value project A 2. Net present value project 3. Which investment alternative if other) would you recommend that the company accept Step by Step Solution
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