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Perit Industries has $110,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Perit Industries has

Perit Industries has $110,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:

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Perit Industries has $110,000 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 Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project 110,000 $ 0 $110,000 20,000 68,000 $ 8,600 6 years 6 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 16%. Click here to view Exhibit 13B-1and Exhibit 138-2, 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 Which investment altenative (if either) would you

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