Perrot Industries has $340,000 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	$	295,000
Working capital investment required				$	295,000
Annual cash inflows		65,950			58,900
Salvage value of equipment in six years		23,000
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 10%.