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Perrot Industries has $360,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives follow: Project $315.000 Cost

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Perrot Industries has $360,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives follow: Project $315.000 Cost of equipment required Working canital investment required Annual cash inflows Salvage value of guinment in six years Life of the project $ 315.000 56,400 71.000 22,000 6 years 6 years The working capital needed for project 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 102, to determine the appropriate discount factors) using tables Required: 1-6. Calculate net present value for each project. (Negative amount should be indicated with a minus sign. Round discount factoris) 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 O Project B

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