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Perit Industries has $150,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Cost of equipment

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Perit Industries has $150,000 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 $150,000 $ $ 0 $150,000 $ 24,000 $ 37,000 $ 8,500 $ @ 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 15% Click here to view Exhibit 138-1 and Exhibit 138-2. 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

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