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Exercise 12-7 Net Present Value Analysis of Two Alternatives (LO12-2) Perit Industries has $210,000 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 $210,000 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 B $210,000 $ 0 $ 0 $210,000 $ 30,000 $ 52,000 $9,100 $ 0 6 years 6 years The working capital needed for project will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 15% Click here to view Exhibit 12B-1 and Exhibit 128-2, 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 B 3 Which investment alternative (if either) would you recommend that the company accept

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