This question is from chapter 12 of Managerial Accounting 16^th edition by Ray Garrison.

Exercise 13-7 Net Present Value Analysis of Two Alternatives [L013-2] Perit Industries has $155,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B 155,000 Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project 0 $155,000 $ 25,000 57,000 $ 9,600 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 15%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables