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Lambert Manufacturing has $120,000 to invest in either Project A or Project B. The following data are available on these projects (Ignore income taxes.): Project
Lambert Manufacturing has $120,000 to invest in either Project A or Project B. The following data are available on these projects (Ignore income taxes.): Project A Project B $120,000 $70,000 Cost of equipment needed now Working capital investment needed now Annual net operating cash inflows Salvage value of equipment in 6 years $50,000 $50,000 $45,000 $15,00 Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided. Both projects have a useful life of 6 years. At the end of 6 years, the working capital investment will be released for use elsewhere. Lambert's discount rate is 14%. The net present value of Project A is closest to: Multiple Choice $82,241 $67,610 $74,450 $81,290
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