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Perrot Industries has $390,000 to InvestThe company trying to decide between two alternative uses of the funds. The alternatives follow Project A $ 390,000 $
Perrot Industries has $390,000 to InvestThe company trying to decide between two alternative uses of the funds. The alternatives follow Project A $ 390,000 $ 390,000 Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in years Life of the project 63.900 72,400 25,000 6 years6 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 13 % Click here to view Exhibit and Exhibit determine the appropriate discount factor(s) using tables.
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