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tion. m.tpx Exercise 11-5 Net Present Value Analysis of Two Alternatives [L011-21 Modifed Perit Industries has $100,000 to invest. The company is trying to decide

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tion. m.tpx Exercise 11-5 Net Present Value Analysis of Two Alternatives [L011-21 Modifed Perit Industries has $100,000 to invest. The company is trying to decide between two alternative uses for the funds. The alternatives are: Cost of Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project $100,000 $O $21,000 $8,000 6 years $100,000 $16,000 The working capital needed for Project B will be released at the end of six years for investment elsewher. Perit Industries' discount rate is 14%. Click here to view Exhibit 118-1 and Exhibit 11B:2. to determine the appropriate discount factor(s) using tables Required a. Determine the net present values. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s). When you enter a factor, use a whole number followed by 3 decimal places, for example: 0.123 or 3.456.) arCash Flow 14% PV

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