Exercise 14-7 (Algo) Net Present Value Analysis of Two Alternatives (LO14-2] 171 Dos Perit Industries has $125,000 to invest. The company is trying to decide between two alternative uses of the funds. The altematives are Predet Prosect $125,000 5 SO $125,000 123,000 $ 75,000 5.00 6 year years Cost of equipment required Working capital Investment required Annual cash inflows Salvate value of equipment in six years Life of the project book Hint The working capital needed for project will be released at the end of six years for investment elsewhere. Perit industries discount rate is 15% Print Click here to view Exhibit 148.1 and Exhibit 148.2 to determine the appropriate discount factors) using tables References 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 Nat present value project A 2 Net present value project 3 Which investment altomative either would you recommend that the company accept