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Perit Industries has $155,000 to invest. The company is trymg 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 trymg 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 $155, eee $ e $ $155,000 $ 20,eee $ 55,000 $ 9,400 $ 8 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries discount rate is 14% Click here to view Exhibit 138.1 and Exhibit 13B-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 3. Which investment alternative (if either) would you recommend that the company accept? whole dollar amount.) ces 1. Nel present value project A 2. Net present value projecte 3 Which investment alternative {lf either) would you recommend that the company accept? B

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