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Haas Trucking Company founded in 1985 provides safe and dependable freight services. Haas has $115,000 to invest in one of the two projects listed below.
Haas Trucking Company founded in 1985 provides safe and dependable freight services. Haas has $115,000 to invest in one of the two projects listed below. Project A Project B Cost of equipment required $115,000 $ 0 Working capital investment required $ 0 $115,000 Annual cash inflows $ 21,000 $ 69,000 Salvage value of equipment in Six $ 8,700 $ 0 years Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. The company's discount rate is 15%. Click here to view Exhibit 128-1 and Exhibit 123-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative value 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 value 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? Net present value project A 2. Net present value project B Which investment alternative (if either) would you recommend that the company accept
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