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Exercise 14.7 (Algo) Net Present Value Analysis of Two Alternatives [LO14-2] Perit Industries has $125,000 to invest in one of the following two projects: The

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Exercise 14.7 (Algo) Net Present Value Analysis of Two Alternatives [LO14-2] Perit Industries has $125,000 to invest in one of the following two projects: The working capltal needed for project B will be released at the end of sbx years for investment elsewnere Perit industries' d rate is 15%. Cick here to view Exibit tab:t and Exhibit 148-2, to determine the appropriate discount factor(s) using rables: Required: 1. Compute the net present value of Project A. Note: Enter negative values with a minus sign. Round your finai answer to the nearest whole collar omount. 2 Compute the net present value of Project B. Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount. 3. Which imvestrent alternative of either) would you recommend that the company accept? EXHIaIT 14B-1 Proment Value ofS1, (1+r)61 Presunt Value of an Aasuisy of 51 is Arrars; r11+(1+r)n1

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