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Exercise 7-7 (Algo) Net Present Value Analysis of Two Alternatives [LO7-2] Perit industries has $135,000 to invest. The company is trying to decide between two

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Exercise 7-7 (Algo) Net Present Value Analysis of Two Alternatives [LO7-2] Perit industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit industries' discount rate is 17%. Click here to view and Exhibit 78-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. Note: Enter negotive values with a minus sign. Round your final answer to the nearest whole dollor amount. 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 investment alternative (if either) would you recommend that the company accept? (1+r)111 Exercise 7-7 (Algo) Net Present Value Analysis of Two Alternatives [LO7-2] Perit industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit industries' discount rate is 17%. Click here to view and Exhibit 78-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. Note: Enter negotive values with a minus sign. Round your final answer to the nearest whole dollor amount. 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 investment alternative (if either) would you recommend that the company accept? (1+r)111

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