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Perit industries has $140, 000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: The working
Perit industries has $140, 000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: 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 8B-1 and Exhibit 8B-2. to determine the appropriate discount factor(s) using tables. Required: Calculate net present value for each project. (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.) Required: Calculate net present value for each project. (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)
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