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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 Project A Project

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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 Project A Project B $150,000 $ Cost of equipment required Working capital investment required 0 $150,000 Annual cash inflows s 24,000 37,000 $8,500 Salvage value of equipment in six years 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. rate is 15%. Perit Industries' discount Click here to view Exhibit 138-1 and Exhibit 138-2. to determine the appropriate discount factorts) using tables. Required 1. Compute the net present value of whole dollar amount.) 2. Compute whole dollar amount.) 3. Which investment alternative (if either) would you recommend that the company accept? Project A. (Enter negative values with a minus sign. Round your final answer to the nearest the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest 1. Net present value project A 2. Net present value project B 8,500 3,675 Which investment alternative (if either) would you 3. Project B that the company accept

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