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Perit Industries has $180,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: The working capital
Perit Industries has $180,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 15%. Click here to view Exhibit 11B-1 and Exhibit 11B-2. to determine the appropriate discount factor(s) using tables. a. Calculate net present value for each project. b. Which investment alternative (if either) would you recommend that the company accept? Project A Project B
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