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Perit Industries has $170,000 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 $170,000 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 Life of the project Project A Project B $170,000 $ @ $ $170,000 $ 26,000 $ 43,000 $8,700 $ 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% 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? Required: 1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer 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 3 Which investment alternative (if either) would you recommend that the company accept

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