Perrot Industries has $$345,000$ to invest. The company is trying to decide between two alternative uses of the funds. The alternatives

follow:

The working capital needed for project B will be released at the end of six years for investment elsewhere. Perrot Industries' discount

rate is $10\%.$

Click here to view Exhibit $10-1$ and Exhibit $10-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

$1-$a$.$ Calculate net present value for each project. $($Negative amount should be indicated with a minus sign. Round discount factor$($s$)$

to $3$ decimal places. Round other intermediate calculations and final answers to the nearest whole number.$)$

$1-$b$.$ Which investment alternative $($if either$)$ would you recommend that the company accept?

Project A

Project B