Present Investment Value of Cash the Project Project A B Required Inflows (years) $170,000 $329,321 7 5 118,000 5 302,000 12 C$ 105,000 $260,035 $ 165,000 $338,136 7 3 Internal Rate of Return 12% 17% 16% 15% The net present values above have been computed using a 10% discount rate. Required: 1. Compute the profitability index for each project 2. In order of preference, rank the four projects in terms of net present value, profitability Index, and internal rate of return Complete this question by entering your answers in the tabs below. Required 1 Required 21 Compute the profitability index for each project Note: Round your answers to 2 decimal places Profitability Project index ^ B C D Project nequired A $170,000 inriows $329,323 years Or neturn 7 12% 8 $ 118,000 $ 302,000 12 17% C $ 105,000 $ 260,035 D $ 165,000 $ 338,136 7 3 16% 15% The net present values above have been computed using a 10% discount rate. Required: 1. Compute the profitability Index for each project. 2. In order of preference, rank the four projects in terms of net present value, profitability Index, and internal rate of return. Complete this question by entering your answers in the tabs below. Required 1 Required 21 In order of preference, rank the four projects in terms of net present value, profitability index, and internal rate of return. Net Present Value Internal Rate: Profitability Index of Return First preference Second preference Third preference) Fourth preference Perit Industries has $125,000 to invest in one of the following two projects: Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipeent in six years. Life of the project Project A $ 125,000 $0 $ 20,000 $ 8,000 Project B 50 $125,000 $ 64,000 $0 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 148-1 and Exhibit 148.2. to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. Note: 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. Note: Enter negative values 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? Answer is complete but not entirely correct. 1 Net present value project. A 2. Net present value project B 3. Which investment alternative (if other) would you recommend that the company accept? $ (50,100) 278,446 Project B