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Perit Industries has s140,000 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 s140,000 to invest The company is trying to decide between two alternative uses of the funds. The alternatives are Cost of equipment required $140,000 Working capital investment required $140,000 Annual cash inflows $23,000 $67 000 Salvage value of equipment in six years $8.500 Life of the projoct 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 17%. Click here to view Exhibit 11B-1 and Exhibit 11B-2. to determine the appropriate discount factor(s) using Required a Calculate net present value for each project ProjectA I Project B Net present value b Which investment alternative (ifeither would you recommend that the company accept? Project A Project B References eBook & Resources O Type here to search

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