Exercise 14-7 (Algo) Net Present Value Analysis of Two Alternatives (LO14-2] 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 Pradec Podlect $210,000 $ e $200 $ 30,000 $ 52,00 9,100 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 15% Click here to view Exhibit 148.1 and Exhibit 148.2 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. Round your final answer to the nearest whole dollar amount.) 2. Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative of either would you recommend that the company accept? 1 Net present value project 12. Net present value project B 3 Which investment iterative of other) would you recommend that the company accept DHIBET 18-1 Pre Value of St. Periods 5% 56 1 0.962 0952 094 0935 0925 090 9% 10 118 123 UN 2 15% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 900 0.925 0907 0.890 0.313 0157 0342 0906 0020797 070 0756 0.43 6731 078 0706 0.64 0.572 051 050 000 1993 209 27 228 3 0.889 0.854 0940 0.816 0.7940072 07510731 072 4 0.855 0.323 0.792 0.763 07350708 0683 0659 036 053 052 0512 055 054 05 049 042 047 046 0437 0.423 0:00 068 06750558 0641 0624050005000579 056 051 052 051 050 5 0.822 0784 0747 0713 0681 650 0621 0.03 0.567 0543 0549 0497 0.06 045 0,49 0,002 0,36 0.300.356 0341 0.08 0.790 0746 0.705 0666 06:30 0506 0564 0.5350507 040 0456 00480 0190 030 0,352 0.19 020 021 0202 7 0.250 0711 0.665 0.623 0.5830547 05030432 0,452 0425 0400 06 0354 0m 0:1 0.296 027 026 025 026 0292 0.110 8 0.731 0677 0.627 05820540 0502 04670434 0404 0376 0351 032 03050285 020 0240 00 00 00 9 07030645 0.592 0544 0.500 0.400 0.424 0.391 0361 0333 0.308 0284 026 0206225 0205 04 030 047 015 016 0 10 0.676 06140558 0.508 0.163 0.422 0.396 0352 0322 0295 0270 024 0222020061910116 01620149 00129 016 11 0.650 0.585 0.527 0.4750429 0388 03500377 0282 026 027 026 016 017 0162 0940 905 080136004 12 0.625 0.557 0.497 044 0.397 0.356 0.319 9.236 0257 0.231 0.208 0187 13 0,501 0.530 0469 0415 0358 0.326 0290 0258 0.229 0204 0182 03 05 0130011 0000 000 0005 006 0001 0056 0165 0152037 0124 01 02 0.002 0.0986076 000 14 0:577 0.505 0442 0.388 0.340 0.299 0263 0.232 0205 0181 0:160 0141 0125 om 00 00 00 0.00 0.00 0.05 004 0044 15 0.555 0 481 0.4170362 0.35 0.275 023 0.209 010 0100 0140 0123 0100 0.095 000 OM 0057 0051 005 000 16 0.534 0.458 0.394 0.329 0.292 0252 0.21 08 0163 01 0123 0109 0.093 00 00 00 054 000 000 0000 0028 17 0.513 0.436 0371 0317 0270 0231 0198 0170 00 00 00 0.00 0.00 0.00 0.000 002 0.05 0.034 000 0026 0023 18 0.494 0.4160.350 0.296 0.250 0.212 0:180015001300m 0.035 0.001 0.000 000 00 00 00 02 00280004 0000 19 0.475 0.396 0.331 0.272 0232 0.194 0164 013 0.19 0.00 0.00 0.00 0.00 0.051 000 037 03 0.003 002 0.000000 COM 20 0.456 0377 0.312 6258 0215 0178 00124 0904 0.037 ODVB 0.0510051 000 00 00 002 0022 300000 21 0.439 0359 0.294 02420199 0.164 01350112 com 007 0064 005 004 00 003 0025002 00:01 201 0000 0422 0342 0.278 0.226 0184 015001230101 000 000 0056 0.046 0000 0002 0.025 0.027 Mon 6:00 0000 000 22 04060326 0.262 0211 0170 0738 0112 0.091 007 0060 009 0.000 0.00 0.007 0.002 00 00 00 00 0.00 0.00 0.005 24 0.390 00 0.2470197 01580176 0902 0.002 0.066 0.053 000 000 000 000 000 000 000 000 000 000 015 25 0146 0.375 0295 02330184 0.092 0074 0.055 000 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.000 000 0004 26 0.3510281 02200172 0135010000040066 0.053 0012 0.003 0.025 0.021 000 000 000 000 000 0005 00004 0347 0.208 0.207 0101 0125 0086 0.076 0060 0047 00370029 602 00 00 0.00 0.00 0.00 0.00 0.00 0.00 0.090 00690054 00420630 0026 0.0200.0002 0000300002 20 0150 0.115 0230 0.255 0196 29 0.021 020 0101 0167 0.002 0063 004 003 002 0022 0.00 0.0000000000000000000022020 0.009 0.075 00 00 00 002530020001.0012 0009 00 00 00 00 00 30 03080221 0176 0000000000000000000000000000000000000 30 020305420970067 0006 0.03200220015001 03 BOHIBET 14B 2 recent Value of an emelty of $1 in home - Periods MAL 5 226 4 5 8 6763 6 56 % 0.9529952 0943 2 09050926 0917 W 1886 1159 1633 0909090100 072 017008621560403403 026 020 00 0.106 0.00 3 10 2775 223 136 70 2573 2024 1601 16 1626 1605 155 156 157 158 159 1492 1 1451 1450 2577 2531 1630 2.687 244 2402 2.701 7322 223 2246 2210 211 21200 2001 2002 20m 1 1952 2405 3357 3.12 4452 4320 2240 3120 202 2037 294 294 295 2.7 273-2620 269 250 2540 241 242 230 4212 4100 3992 1890 129135963605151710301359 3274 1199 - 3623058 2091 26 22 22 522 5.076 490 4762 4. 0.002 5736 355 4231 4m 5582 1996 1997 350 2.0 no 2326 32051012 3020 3951 539 5.200 Sors 4564 4423 424 400 122 123706365350806 107 10 10 6210 5.97 5747 5535 5 5498 4799 460 4.346 407 4071 356 357 1726 1035 1021129 7435 2108 6.902 655 5247 5995 5790 55.00 52 450 m2 4007 4451 430 AM 40 16 362 1663 10 8111 7722 7.300 2024 10 65 539 5650 5.426 52% 5.00 4.333 444 43 42 404 wa 370 262 357 11 8.760 8305 7887 2490 2019 5305 12 9305 6.96 6207 5 5 5.451 5234 5022 6 46 46 412 40 3902 37701056 3.360 3394 2003 7536 7161 65.692 6914595000 5.1 57 444 442741 1051 372 13 9986 9394 Bas) 3.30 7904 2303 6750 424 61225055530 54940475453 14 10563 9.899 9205 14200 4051 110 370 2.70 3.244 2705 23676.902 6520 63026002 5724 5.60 52295000 4302 24 12 234 15 11119 10.330972 9100 11550 200711 66.002 625 555 534 5 6 404 435 51350 16 11652 10.833 10:36 947 US 72379 69 6604 625 5954 5.50 5.605 53 450 455 456 43 17 12.156 11274 50447793 9.222 2544 3.022 2549 2120 6729 633 60 570 505 5722 0475 456 4 6 4 390 10 12.659 11690 10.02810059 372 1.750 11.201 1702 2.250 6.500 6.40 6123 5885534 5.273 50 40 40 40 40 400032 19 1741206511158 10.336 9504 B950 5 709 736 6550685758400 450 50 00371 20 12 590 12.462 1470 10.5049018 9129 57903 74 7025 6.6 62 590 520 55001 4800 2940 21 14.029 12.02111754 10 R35 100179292 369 11.075 752 702 012 597 565 407 4 6 44297401 1903 22 14451 103 12.042 1061 10201 9412 2816 2545700 510 359 15 540 55 40 40 40 4302 000 23 14 ST 3.400 12:00 112720 9500 3.08.20677 7230 6792 690 Mm 2 495 493 40215 0 0 24 15 247 179020500 10529992 1905.348 2734 72036835 0 6023 57 58 59 52100 35 15622 14.096 12783 1654 106259.322 9078422733 20 623 097570 550 4724 26 15.903 14.325 1003 126 0.810 9.909 9.612 2372 90 401 052064 4720 40003214 27 16 330 1463 0241 1907 10935 10.027 52 54 73 7209 0905 616798 494 4.74 524 4150 1999 28 1666114198 12.406 1207 105110110 907100245 6352 5.0.20 45 50 16.904 1511 13.591 12271115 10 0.00022 00 00 00 00 04 0 17.292 1572 1705 12.400 11.258 1024 907 200 750 10 19.790 1710 15.000 2 1925 1075797298244 22 50 TER