Perit Industries has $135,000 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 Project B $135,000 $ $ $135,000 $ 25,000 $ 63,000 $ 9,800 $ 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 17%. Click here to view Exhibit 13B-1 and Exhibit 13B-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 alternative (if either) would you 3. recommend that the company accept? 3 The management of Unter Corporation, an architectural design firm, is considering an investment with the following cash flows: Year Investment 1 $78,000 2 $ 5,000 3 4 5 6 7 8 9 10 Cash Inflow $ 5,000 $10,000 $12,000 $15,000 $18,000 $16,000 $14,000 $12,000 $11,000 $11,000 Determine the payback period of the investment. (Round your answer to 1 decimal place.) Payback period years