Haas Trucking Company founded in 1985 provides safe and dependable freight services. Haas has $180,000 to invest in one of the two projects listed below.

	Project A		Project B
Cost of equipment required	$	180,000	$	0
Working capital investment required	$	0	$	180,000
Annual cash inflows	$	32,000	$	54,000
Salvage value of equipment in six years	$	9,300	$	0
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 12B-1 and Exhibit 12B-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?

1. Net present value project A 2. Net present value project B Which investment alternative (if either) would you 3. recommend that the company accept