Perit Industries has $120,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives ore Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project A Project B $120,000 $ @ $ $120,000 $ 22,099 $ 78,000 $ 8,800 $ e 6 years 6 years The working capital needed for project will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 14% Click here to view Exhibit 14B-1 and Exhibit 148 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 2 Net present value project A Net present value projed B Which investment alternative (if either) would you recommend that the company accept? 3. ECOBIT 14B-2 Present Value of an Annuity of 51 in Arreart: Periods 2 3 4 5 7 8 10 TI 12 13 14 15 5% 65 85 9 10% 11% 12 134 15% 16% 174 18% 1996 20% 21 229 0902 0952 0943 0935 0926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.055 0.347084008330826 0.820 0800 0005 0.500 1886 1959 1833 1800 1783 1759 1735 1713 1690 1668 1647 1626 1605 1585 566 1547 152815091492 1474 1457 400 2.775 2728 2673 2624 2.577 2531 2.487 2444 2.402 2361 2322 2283 2246 2210 2174 2140 2.106 2074 2042 2011 1962 3.630 3546 3665 3.387 3312 3240 3.170 3.102 3.037 29742.914 2.855 2.798 2743 2690 2639 2589 2.540 2.494 2448 2.1042362 4452 432 4212 4100 3.993 3.890 3.791 3696 3.605 3.517 3.433 3352 3274 3199 3127 3058 2.991 2.926 2854 2.003 2745 2.69 5.242 5.075 4.977 4.767 4623 4496 4 355 4 231 4111 3.998 3.889 3.754 3685 3.589 3498 3410 3326 3245 3167 309210202951 6.002 5736 5.582 5.389 5.206 5033 4868 4712 4554 4.423 4.288 4160 4.039 3.922 3.812 3.706 3.6053508 3.416 3.327 3242310 6.733 6.463 6.210 5971 5.747 5535 5,335 5146 4968 4799 4.639 4487 43444207 4078 3.954 3.837 3726 3619 3510 321 1309 2435 7108 6.902 6.515 6.247 5.995 5.759 5.537 5328 5.132 4.946 4772 4602 4.451 4.303 4.163 40313 905 376 36733565 3453 8.171 7722 7360 7024 6.710 6.418 6145 5.889 5.650 5.426 5216 5019 4833 4659 4494 43394192 40543923 1.799 1682 1571 8.750 3.306 7.887 7499 7139 6.805 6.495 6.207 5938 5.6875453 5234 502948364656 4.456 4327 4177 4035 3902 3776356 9,385 8.563 8384 7943 7536 2161 6.814 6.492 6194 5918 5660 5421 5197 4.988 4.793 4.611 4.4394278 4127 2985 3.851 325 9.986 9.394 8.853 8.358 7.904 7487 7103 6.750 6.424 6122 5.342 5583 5.342 5119 4.910 4715 45334.362 4203 4052 3912 3700 10.563 9899 9.295 8745 8244 7.786 7367 6.982 6.628 6 302 6002 57245.463 5.229 5008 4802 4611 4.432 4255 4109 31.962384 11.119 10.3809712 9,108 8559 8061 7606 7191 6 311 64626142 5.847 5575 5.324 5.092 4876 4675 4499 435 4153 4001 3.85 11652_10838 90106 9.447 8851 8313 7824 7379 6 974 6,604 6.265 5954 5.668 5 405 5162 4 938 4.730 4536 4.352 4199 4033282 12.166 11 274 10.077 9763 9122 8544 8.022 7549 2120 6729 6.373 6047 5749 5.4755222 4.990 4775 4576 439142194059 1960 12.659 1680 10.828 10.0599372 8756 8201 7702 7250 6840 6.467 6128 5.818 55345273 5.033 48124603 4419 420 40003921 13134 12.085 71158 10.336 9604 8950 8.365 783973666938 6550 6198 5877 5.584 5.316 5.070 4313 4.635 444242040973.542 3590 12.462 11470 10.594 9818 9129 8514 7.963 7469 7025 6623 6259 5929 5628 5.353 5101 4870 4657 446042290 14.029 12.821 1754 10.836 10.0179292 86498.075 75622102 6.687 6.312 5.973 5665 5384 5127 4991 4.675 4.476 42924121 14.451 1163 12.042 1061 10.201 9442 8.7728176 7645 7070 6743 6359 601 5696 5.410 5549 4.909 4.690 4488 4.30241303970 14.857 13.489 1230311272 10371 9.580 8.8838.266 7718 7230 6.792 6.399 6044 5723 5.432 5167 4.925 4.703 4.499 4311 15 247 1.799 12.550 11469 10.529 9707 8985 8348 7784 7283 6835 6.434 60735746 5.451 5.102 4.937 4713 45074718453 3981 15.022 14.094 12.783 1654 10.675 9822 9077842278437330 6873 6.4646097 5.766 5.467 5.195 4514 15,983 14.375 1300311826 10.810 9929 9161 8.488 2896 7372 6 906 6.491 6118 5783 5430 5.2064956 472845204120 4151 153301443 13.211 11987 10.935 10.027 9237 8548 794374096 935 6514 6136 5.798 5 492 5215 496447344524 433241543990 16.663 0983.406 12137 1051 10.116 9.307 8.602 7984 7441 69616,534 6.152 5810 5502 52234970 4739452843054157 15 984 541 13.591 12.278 11158 10.198 93708650 3.022 7470 69836561 6.166 5820 5510 52294975 4743 4531 17.292 15372 13765 12.409 11258 10274 9427 8694 8.055 7496 7003 6566 6.177 5829 5577 5.235 4.97947464534433940 19.793 17159 15.046 3321925 10.757 9.7798.951 244 7634 7105 6642 6.233 5.8715.548 5250 4.937 4.760 4544 430 4663999 16 T7 19 19 20 22 23 24 27 28 29 30 40 EXHIBIT 140-1 Present Value of the periods 2 4 5 0 7 10 ERPREPRAR &R 41 5% N 10% 113 12 139 149 159 15% 173 18% 19% 20% 2010 24 0.962 0.952 0.943 0935 0.926 0917 0.909 0.901 0.893 0385 0.877 0.870 0.362 0.855 0.847 0.840 0.833 0.826 08200313 0.005 0.500 0.925 0907 0990 0.873 0857 0842 0.826 0.912 0.797 0783 0.769 0.756 0743 0731 0718 0.706 0.094 06 06720661000 600 0.8890864 0.840 0.816 0794 0772 0.750 0.731 0.712 0.693 06750658 0641 0624 0.609 0.593 0.579 0554 0551 0.5370524 0.592 0855 0823 0.7920763 0735 0.7030683 0659 0.636 0000592 0572 0552 0534 0516 0499 0482 04670451 0.4370423 0.822 0784 0.747 0.713 0681 0.650 0,621 0.593 0.567 0543 0.519 0497 0.476 0.456 0437 0419 0402 0.396 0.370 0.355 0.3410120 0.750 0.746 0705 0666 0630 0.596 0.564 0.535 0.507 0480 0,456 0432 0.410 0.390 0370 0352 0235 0.319 0.393 0.209 0.275 0242 0.750 07 0065 0623 05030547 0513 0482 0.452 0425 0.400 0.376 0354 0333 0314 0.296 0279 0203 0209 0235 0272 0210 0731 0.677 0.627 0.502 05400302 04670404 0404 0.3760351 0.327 03050285 0206 0249 0233 0.2180204 0101 0179 O 0.7030665 0.592 0544 05000460 0424 0.391 0.361 0333 0.308 0284 0263 020 0225 0.209 01940130 0167 0155 0144 0.67100140558 0.500 0.400 0.422 0.06 0.352 0.322 0295 0270 0247 0227 0208 0191 0176 01620149 007 012011 0302 0.650 0.505 0.527 0.475 0429 0.300.350 0.31 0.282 0261 0237 0.2150195 01700162 014101350123 0.112 0.1030094 0004 0.025 0.557 0.497 0.444 0.397 0.356 0.319 02860257 0231 0.208 0.187 0168 0152 0137 0124 0.112 0102 009200000000 0.601 0530 0409 0.415 0.368 0.326 0200 0.258 0.2290204 0182 0163 0145 0.130 0.116 0104 0.093 0084 007 0068 00010055 05770505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0100 0.141 0125 0.111 0.099 0.088 0.078 00090002 0.055 00490044 0.556 0.401 0417 0362 0.315 0.275 0.239 0.209 0583 016001400123 0.108 0.005 0.084 0.074 0.065 0057 0.051 0045 0.0400005 0534 0.458 0.394 0.3390.292 0252 02150988 0.163 0.141 0123 01070093 0.0010071 0.062 0.054 0.047 0012 0.035 002 0021 0513 0.436 0.371 0.312 0270 02310198 0170 0.146 0125 0108 0.093 0.000 0.069 0.060 0052 0.045 0.039 0.034 0000 002000 0494 0.4% 0.350 0.29 0.250 0.212 0100 0153 0130 0111 0.095 001 0.069 0.059 0051 0.044 0038 0.002 0.028 0024 00210018 0.475 0.396 0.331 0.277 0232 0194 0164 0138 0116 00900033 0090 0.000 0.051 0.043 0037 0001 0.027 0.02300200012 0 0 0.458 0.377 0.312 0258 0.2150178 01490124 0164 0.087 0.073 0001 0051 0.0430037 0.031 0.026 0022 0.019 0.0160010002 0.439 0.359 0294 02420199 0164 0050112 0.093 007 0064 0053 0.044 0037 0.031 0.026 0.022 0010 0005 000000009 0472 0.342 0.273 0.226 0184 0150 0123 0.101 0.083 0.06 0056 0046 0.038 0.03200260022 0.018 0.015 003 0.01 0.00 0.00 0.406 0.3260262 0211 0170008 0112 0.0910074 0.060 0.049 0040 0.003 0.0220022001) 0.015 0.0120.010 0.000 0.007 0.005 0.390 0.310 0.247 0197 0.1580126 01020.0820006 00530043 0035 0.028 0.023 0019 0.015 0013 0010 0.008 0.002 0.0000005 0.375 0295 023 0114 0146 0.116 0.092 0.074 0059 0.047 0038 0.0300024 0.0200016 0.013 0.0100009 0007000600050004 0.361 0.281 0220 0172 01350106 0.0840.006 0053 00420033 0026 0.021 00170014 0.011 0.009 0.00 0.008 0.005 0.001 000 0347 0.250 0.207 0.361 0.125 0.098 0.076 0.060 0047 0037 0029 0023 0018 0.01 0.011 0.009 0.007 0006 0.005 0.004 0000 0002 0333 0255 0196 0.150 0116 0.090 0.069 0.054 0.042 0.003 0.026 0.020 0.0160.012 0090 0.008 0.005 0005 0004 0.003 0.002 0.003 0.321 0243 0.185 0.141 0107 0.0820063 0.0480037 0.0290022 0.01 0.014 0.011 0.008 0.006 0.005 0004 0.003 0002 0.002 0.002 0.308 0231 01/4 0.131 0.099 0.075 0.0570044 0.033 0.026 0.020 0,015 0.012 0.009 0.007 0.005 0004 0.000 0.000 0.002 0.002 0001 02080142 0,097 0.067 0.046 0.032 0.022 0.015 0.01 0.008 0005 0004 0.003 0.002 0.001 0.001 0.001 0000 0000 0000 0000 0.000 28 24 20 20 27 40