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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 capital
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 vlew and to determine the approprlate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negatlve 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 negatlve 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? EXHIBIT 12B-I Present Value of $1;(1+r)n1 EXHIBIT 12B-2 Present Value of an Annuity of $1 in Arrears; 1/r(1(1/(1+r)n))
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