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Perit Industries has $ 1 1 5 , 0 0 0 to invest. The company is trying to decide between two alternative uses of the

Perit Industries has $115,000 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 $ 115,000 $0 $ 21,000 $ 8,7006 years Project B $0 $ 115,000 $ 69,000 $06 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 15%. Click here to view Exhibit 7B-1 and Exhibit 7B-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 project B 3. Which investment alternative (if either) would you recommend that the company accept? Perit Industries has $115,000 to invest. The company is trying to decide between two alternative uses of the funds. The
are:
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Indus
rate is 15%.
Click here to view Exhibit 78-1 and Exhibit 78-2, to determine the appropriate discount factor(s) using tables.
Required:
Compute the net present value of Project A.
Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.
Compute the net present value of Project B.
Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.
Which investment alternative (if either) would you recommend that the company accept?Fusweylerets 1[11+7]1
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