Exercise 12-7 Net Present Value Analysis of Two Alternatives (LO12-2) Perit Industries has $120,000 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 Project $120,000 $ $ $120,000 $ 22,000 $70,000 $ 8,800 $ 6 years 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 14% Click here to view Exhibit 128:1 and Exhibit 120.2. to determine the appropriate discount factor(s) using tables Required: 1. Compute the net present value of Project A. (Enter negative 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 negative value 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 present value project A 2. Net present value project Which investment alternative (if either) would you 3 recommend that the company accept