Crawford Company has $225,000 to invest. The company is trying to decide between two alternative uses of the funds.

0 $ Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in 5 years Life of the project $ 225,000 $ 135,000 - $ 90,000 $ 55,000 $ 55,000 $ 20,000 $ 10,000 5 years 5 years The working capital needed for Project B will be released at the end of 5 years for investment elsewhere. The company's discount rate is 10%. INSTRUCTIONS: 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 that the company accept