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Perit Industries has $165,000 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 $165,000 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 intlovs Salvage value of equipment in six years Life of the project Project $165,000 0 $ 21,000 $ 9.500 6 years Project B $ 0 $165.000 $ 56,000 $ 0 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% Click here to view Exhibit 78-1 and Exhibit 7B-2, to determine the appropriate discount factors) 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 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 Which investment alternative ther) would you recommend that the company accept

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