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Exercise 12-7 Net Present Value Analysis of Two Alternatives [LO12-2] Perit Industries has $125,000 to invest. The company is trying to decide between two alternative

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Exercise 12-7 Net Present Value Analysis of Two Alternatives [LO12-2] Perit Industries has $125,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: The working capital needed for project 8 will be released at the end of six years for investment elsewhere. Perit industries' discount rate is 15%. Click here to view Exhitit 12:8-2 and Exhibit 128-2, to determine the appropriate discount foctor(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 hearest 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 (f either) would you recommend that the company accept

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