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Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Coot of equipment

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Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Coot of equipment required Working capital investment required Annual can inflows Salvage value of equipment in six yearn Life of the project Project Projects $135,000 $ 0 $ 0 $135,000 $ 25,000 $ 63,000 $ 9,800 $ 0 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 17% 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 Not present value project B Which investment alternative of other) would you 3 recommend that the company accept

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