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Lambert Manufacturing has $100,000 to invest in either Project A or Project B. The following data are available on these projects (Ignore income taxes.) Project

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Lambert Manufacturing has $100,000 to invest in either Project A or Project B. The following data are available on these projects (Ignore income taxes.) Project A Project B $100, 000 $60,000 Cost of equi pnent needed now Working capltal investment needed now Annual cash operating inflows Salvage value of equipment in 6 years $40,000 $ 40,000 $ 10,000 $35,000 Click here to view Exhibit 128-1 and Exhibit 128-2. to determine the appropriate discount factorts) using the tables provided. Both projects will have a useful life of 6 years and the total cost approach to net present value analysis. At the end of 6 years, the working capital investment will be released for use elsewhere. Lambert's required rate of return is 14% The net present value of Project B is: The net present value of Project B is: Multiple Cholce $90,355 $76,115 $36,115 S54,355

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