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Perit Industries has $125,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project Project B

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Perit Industries has $125,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project Project B Cost of equipment required $1251666 $ 6 working capital investment required $ 6 $125,666 annual cash inflows $ 261666 $ 64,666 Salvage value of equipment in six years $ 81666 $ 6 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit lndustries' discount rate is 17%. Click here to view Exhibit 1481 and Exhibit 1482, to determine the appropriate discount factorls) 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 8. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (i1c either} would you recommend that the company accept

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