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Perft Industries has $140,000 to Invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Cost of equipment
Perft Industries has $140,000 to Invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project A Prated $140,000 $ $ $149,900 $ 23,000 $ 35 999 $ 8,499 $ @ 6 years 6 years The working capital needed for project B will be released at the end of six years for Investment elsewhere. Pent Industries' discount rate is 15% Click here to view Exhibit 14B-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 projecte Which investment alternative (if either) would you 3 recommend that the company accept
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