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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: Cost of equipment

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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: Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Lite of the project Project Project B $155.000 $ 0 $ 0 $155,000 $ 25,000 $ 40,000 $3,600 5 o 6 years 6 years roces The working capital needed for project will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 14% Required: 1. Compute the net present value of Project A. (Enter negative values with a minussign, 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 of either) would you recommend that the company accept? 1. Not present value project A 2. Net present value project B Which investment alternative of either) would you 3 recommend that the company accept

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