Perrot industries has $$355,000$ to invest. The company is trying to decide between two alternative used of the funds. The alternatives follow:

A:

Cost of equipment required $$310000$

Working capital $/$

Annual cash inflows $$70000$

Salvage value of equipment in $6$ years $$21800$

Life of the project $6$ years

B:

Cost of equiment required $/$

Working capital investment required $$310000$

Anual cash inflows $$55900$

Salvage value of equipment in $6$ years $/$

Life of the project $6$ years

Calculate the net present value for each project

Project A $=$

Project B $=$

Which investment would you reccomend the company accept?