Perrot Industries has $325,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives follow:

	Project
	A			B
Cost of equipment required	$	270,000
Working capital investment required				$	270,000
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%.

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. (Round discount factor(s) to 3 decimal places. Round other intermediate calculations and final answer to the nearest whole number.)