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

Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project A $125,000 $0 $20,000 $8,000 6 years Project B $0 $125,000 $64,000 $0 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 17% Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables Required a. Calculate net present value for each project. Project A Project B Net present value b. Which investment alternative (if either) would you recommend that the company accept? O Project A O Project B