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

	Project A	Project B
Cost of equipment required	325,000	-
Working capital investment requiredd	-	325,000
Annual cash inflows	67,650	54,400
Salvage 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' discount rate is 14%.

Required:

Which investment alternative (if either) would you recommend that the company accept? Show all computations using the NPV method. Prepare a separate computation for each project.