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Perit Industries has $155,000 to invest in one of the following two projects: Project A Project B Cost of equipment required $ 155, 000 $

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Perit Industries has $155,000 to invest in one of the following two projects: Project A Project B Cost of equipment required $ 155, 000 $ 0 Working capital investment required $ 0 $ 155 , 000 Annual cash inflows $ 25,000 $ 40,000 Salvage value of equipment in six years $ 8,600 $ 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 Indust discount rate is 14%. Click here to view Exhibit 148-1 and Exhibit 146-2, to determine the appropriate discount factor(s) using tables. Required: es 1. Compute the net present value of Project A. Note: 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. Note: 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 3. Which investment alternative (if either) would you recommend that the company accept

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