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Pertt Industries has $140,000 to Invest. The company is trying to decide between two alternative uses of the funds. The alternatives are Project AProject B

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Pertt Industries has $140,000 to Invest. The company is trying to decide between two alternative uses of the funds. The alternatives are Project AProject B Cost of equipent required Working capital investment required Annual cash inflows Salvage value of equipment in siK years Life of the project $140, 000 $140,000 $ 26,000 60,000 9,700 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 17% Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the approprlate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 2 Compute the net present value of Project B. (Enter negative values with a minus slgn. Round your final answer to the nearest whole doller amount.) 3. Which Investment alternative (If elther) would you recommend that the company accept? 1. Net present value project A 2 Nat present value project B Which investment alternative (if either) would you 3. recommend that the company accept

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