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Perrot Industries has $ 265,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives follows: Project B

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Perrot Industries has $ 265,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives follows: Project B Cost of equipment required Project A $265,000 Working capital investment required $265,000 Annual cash inflows 55,650 42,400 Residue value of equipment in six years 21,200 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perrot Industries' discout rate is 14%. Requirea Which investment option would you recommend that the company accept? Please show separate calculations for each project using the NPV method

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