Exercise 11-5 Net Present Value Analysis of Two Alternatives [L011-2] Perit Industries has $180,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project A $180,000 $0 $32,000 $9,300 6 years Project B $0 $180,000 $54,000 $0 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 15% Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. Required a. Calculate net present value for each project. Project A ProjectB Net present value b. Which investment alternative (if either) would you recommend that the company accept? Project A Project B