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Exercise 1 2 - 7 Net Present Value Analysis of Two Alternatives LO 1 2 - 2 ] Perit Industries has $ 1 3 0

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Exercise 12-7 Net Present Value Analysis of Two Alternatives LO12-2]
Perit Industries has $130,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatves are:The working capital needed for project B will be released at the end of six years for Investment elsewhere. Perit Industres discount rate 1s14%
Click here to view Exnibit 12B-1 and Exhibit128-2, to determine the appropriate discount factor(s) using tables.
Required:
Compute the net present value of Project A.(Enter negatlve 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 negatlve value with a minus sign. Round your final answer to the nearest whole dollar amount.)
Which investment alternative (if elther) would you recommend that the company accept?
\table[[1. Net present yalue project A,],[2.,Net present value project B
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