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Perit Industries has $ 1 2 0 , 0 0 0 to invest. The company is trying to decide between two alternative uses of the
Perit Industries has $ to invest. The company is trying to decide between two alternative uses of the funds. The alternatives
are:
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount
rate is
Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using tables.
Required:
Compute the net present value of Project AEnter negative values with a minus sign. Round your final answer to the nearest
whole dollar amount.
Compute the net present value of Project BEnter 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?
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