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Exercise 12-7 (Algo) Net Present Value Analysis of Two Alternatives [LO12-2] Perit Industries has $115,000 to invest. The company is trying to decide between two
Exercise 12-7 (Algo) Net Present Value Analysis of Two Alternatives [LO12-2] Perit Industries has $115,000 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 $ 115,000 $ 0 Working capital investment required $ 0 $ 115,000 Annual cash inflows $ 21,000 $ 69,000 Salvage value of equipment in six years $ 8,700 $ 0 Life of the project 6 years 6 years
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