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Perrot Industries has $320,000 to invest. The company is trying to decide between two alternative uses of the funds: The alternatives follow: Project $275,000 Cast

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Perrot Industries has $320,000 to invest. The company is trying to decide between two alternative uses of the funds: The alternatives follow: Project $275,000 Cast of equipment required Working capital investment required Annual cash intlows Salvage value of equipment in six years Uite of the project $ 275,000 56.900 62,150 22.200 &years 5 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 10% Click here to view Exhibit:10.1 and Exhibit 10:2. to determine the appropriate discount factors) 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) Net Present Value Project A Project B 1-b. Which investment alternative (if either) would you recommend that the company accept? O Project A Project B

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