Exercise 13-7 Net Present Value Analysis of Two Alternatives [LO13-2] Perit Industries has $130,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B 130,000 Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project 0 $130,000 $ 22,000 33,000 8,300 $ 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 138-1 and Exhibit 138-2, to determine the appropriate discount factor(s) using tables Required 1. Compute the net present value of Project A. (Enter negative values with a minus sign.) 2. Compute the net present value of Project B. (Enter negative values with a minus sign.) 3. Which investment alternative (if either) would you recommend that the company accept? Net present value project A Net present value project B 1. 2. Which investment alternative (if either) would you recommend that the company accept