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$ Perit Industries has $155,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A

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$ Perit Industries has $155,000 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 $ 155,000 Working capital investment required $ @ $ 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 The working capital needed for project will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 14% 6 years Click here to view Exhibit 128-1 and Exhibit 120-2. 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 8 (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative of either) would you recommend that the company accept? 1. Net present value project A 2. Net present value project B 3 which investment alternative ther) would you recommend that the company accept

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