Perrot Industries has $395,000 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 $395.000 Working capital investment $395,000 required Annual cash inflows 72,650 64,400 Salvage value of equipment in 25.200 six years Life of the project 7 years 7 years The working capital needed for project B will be released at the end of seven 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: 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.) 4 Saved The working capital needed for project B will be released at the end of seven 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: 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.) Project A Project B Net Present Value Which investment alternative (if either) would you recommend that the company accept? O Project A O Project B Media/Connect Production/bne/Canada_accounting/Brewer5ce/Exhibit10-1.jpg EXHIBIT 10-1 Present Value of $1 F P (1+r) Period 46 2 3 10 12 19 14 13 10% 126 20% 55 65 316 145 16% 13% 0.962 0.932 0943 0926 0909 0.093 0377 0.002 0.047 0333 0220 0306 0.794 0.751 0.709 0.714 225 245 265 2014 30% 40-5 0925 0.007 0.000 0.557 0326 0797 0.769 0743 0.71 0.094 0672 0650 0630 0610 0.392 0310 0309 0.004 0.340 0.794 0751 0712 0675 0.0+1 0.009 0.379 0351 0334 0300 0.477 0433 0.304 0355 0323 0.792 0735 0603 0836 0.592 0533 0.516 0422 0431 0423 0.397 0373 0330 0200 0322 0.754 0.747 0.61 0.821 0367 0319 0476 0.437 0.402 0370 0.341 0.315 0201 0200 0.136 0.790 0.746 0705 0.630 0364 0307 0436 0410 0.370 0.333 0.303 0.275 0250 0227 0307 0.133 0760 0711 0665 033 0313 0452 0400 0.334 0.314 0279 0.249 0222 019 0175 0159 0.093 0731 0677 0627 0340 0.467 0404 0331 0305 0.306 0233 0.204 0179 0157 0.139 0123 0.000 0703 0643 0392 0.500 0.434 6361 030 0.263 0.225 0.194 0.167 0.144 0125 0100 0094 0.045 0.676 0.614 055 0403 0300 0322 0270 0.227 0.191 0.102 0137 0110 0099 0.005 0073 0.033 0650 0.300 032 0429 0330 0207 0237 0192 0162 0.135 0112 0094 0.079 0.000 0.00 0.023 0625 0357 0447 0.397 0310 021 030 1 0.127 0.112 0.092 0076 0062 0052 0043 0012 0.001 0330 0409 0.30 0.390 029 042 0.143 0.110 0.045 0.07 0.001 0.000 0040 0053 0013 0377 0.000 0442 0.340 036 0300 0100 0123 0000 0070 003 0049 0009 0032 0025 0.000 0305 0401 040 030 01 004 000 0001 000 0031 0025 0020 0006 0.071 000 0042 0012 0015 0019 000 4 0334 000 0000 0015 0012 000 0012 0.005 0.0000 0.000 0021 0016 0012 0006 0.002 0012 0.00 0000000 01 17 0354 0450 0394 0362 0212 616) 123 0.03 0313 0436 037 0210 030 000 30440416 0150 0150 100 100 0006 0.069 10 9475 0796 6351 0222 0164 0116 do 060 0.043 000 0023 001 20 0456 0377 0312 0200 000030071 009 21 84) 0339 424 0199 0.135 0093 000 0003004 0022 00120011 0.000 0422 0142 2014032) GOL 076 0.005 0.00003 0.009 2006 2406 0320 0262 0.470 z banko 2013 322 001 000000 0000000 1300 2310 0341 0.300 0100 0006 0041 60, 6419 60130000 000 6375 32400233 03 0300 0009 0030 200 2016 2010 900 0341 5221-230 032 A 24 22 27 5000 0.004000 0002 0.000 00000 2010 0000 0002 0.0 6000 2000 4 SAIT 600 66000006 0.00 0000044002 6057 960 0014 0010 0.007 0.005 000 0006 0.004 0001 000 0000 000 4 10 EXHIBIT 10-2 Present Value of an Annuity of $1 P. Pind 65 35 45 15 105 125 105 105 105 205 225 345 02 0952 8.943 0936 00000283 2 1306 1.339 1233 1703 1736 1990 2775 2723 2675 2377 2407 2402 232213 3630 3.340 3465 3312 3170 3007 2914 2790 4452 4.330 4212 3.943 1741 305 1433 3274 . 5342 5006 4917 4423 4.355 4111 7 6002 5.706 5302 5.306 4340 4064 3.309 3 4.300 4.00 B 6733 6463 1438 1100 300 6210 3747 6341 33334945 1.722 7.340 6710 " 760 1306 7.13 13) 2063 13 9906 34 16363 15 1299 10.300 8304 2353 9.290 11482 10 1010 4 11.27 1041 WILL 12 AIN 18320 $372 443434 0277 020347 013 0130 030 14 1805 13 13 14 147 1424 LC LINE 1224 214 2106 2042 1901 195 100 101 (309 200 2509 244 2404 233 234 21M 129 3127 2991 234 2740 245 2532 24 2013 14 3336 347 3000 280 279 2643 2163 1.2 2400 2416 3340 1002 287 230 22 4072 3337 341 342 321 322301 4301 4021 375 356 33 354 3019 2379 6145 3400 32164233 444 4390 2923 2002 2003 3 241 44 4327 403 3776 3344 3335 3347 2400 4.09 4127 3301 1406 2305 310 24 430 3912 340 34 32132 43 1942 1 140 139 24 4000 273 140 33 244 43 27 400 371 7336 314 IN 103190473 7.904 7100 64043542 3.342 4 435 5344 TNT 4200 100 9712 5394 THON WI11 140 1375 1092 4475 43 713495430140 4T 2 7:30 SIE 4312 4419 365 205 105 0.794 6721 079 0714 305 1300 2301 149 31 1 IN 13.334 1200 1300 237 12.390 12 9310-534 2 114 10017 39209 530 1342 WARS 234 2 # 14471 1282 SITE THE FA 21 14327 13-409 12 18.329 1275 SM 30 M ANE 23 IN NEW