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please help solve!! Perit Industries has $140,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:
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Perit Industries has $140,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit industries' discount rate is 179 . Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the approprlate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative value with a minus sign, Round your final answer to the nearest whole dollar amount.) 2. Compute the net present volue of Project B. (Enter negative value with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (if either) would you recommend that the company accept? EXHIBIT 128-1 Present Value of 51: (1+)1 EXHIBIT 12B-2. Present Value of an Annulty of 51 in Arrears: 1[1a1++11] Step by Step Solution
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