Exercise 8-7 Net Present Value Analysis of Two Alternatives [LO8-2] Perit Industries has $140,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are $ 140,000 $23,000 Project A Project B Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project $ 140,000 $67,000 $8,500 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Pent Industries' discount rate is 17% Click here to view Exhibit 88-1 and Exhibit 8B-2, to determine the appropriate discount factor(s) using tables Required a. Calculate net present value for each project. Project A Project B Net present value (54,138 $ 17,916: b. Which investment alternative (if either) would you recommend that the company accept? Project B Project A