Perit Industries has $140,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:

Project A	Project B
Cost of equipment required	$140,000	$0
Working capital investment required	$0	$140,000
Annual cash inflows	$26,000	$60,000
Salvage value of equipment in six years	$9,700	$0
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 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. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s).)