The net present value of project A is:

g has $100,000 to invest in either Project A or Project 8. The following data are available on these projects (Ignore income taxes.): Project A Project B $100,000 $60,000 Cost of equipment needed now Working capital investment needed now Annual cash operating inflows salvage value of equipment in 6 years 10,000 $40,000 40,000 $35,000 here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factorfs) using the tables provided. Both projects will have a useful life of 6 years and the total cost approach to net present value analysis. At the end of 6 years, the working capitl investment will be released for use elsewhere. Lambert's required rate of return is 14%. The net present value of Project A is