Perit Industries has $100,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:

Project A Project B Cost of equipment required 5 160,666 5 6 Norking capital investment required 5 6 3 166,666 Annual cash inflows $ 21,666 $ 16,666 Salvage value of equipment in six years $ 8,666 $ 6 Life of the project 6 years 6 years The working capital needed for project B wilt be released anhe end of six years for investment elsewhere. Perit Industries' discount rate is 14%. 1. Net present value project A 2. Net present value project B $ 7.824 3. Which investment alternative (if either) would you recommend that the company accept