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Ferit Industries has $210,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project Project B

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Ferit Industries has $210,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project Project B Cost of equipment required $ 210,000 $0 Working capital investment required $0 $ 210,000 Annual cash inflows $ 30,000 $ 52,000 Salvage value of equipment in six years $ 9, 100 $0 Life of the project 6 years 6 years The working capital needed for project 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 14B-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 (If either) would you recommend that the company accept? 1. Net present value project A 2. Net present value project B 3. Which investment alternative (if alther) would you recommend that the company accept

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