Wriston Company has $300,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are as follows:

	A	B
Cost of equipment required	$300,000	$0
Working capital investment required	$0	$300,000
Annual cash inflows	$80,000	$60,000
Salvage value of equipment in seven years	$20,000	$0
Life of the project	7 years	7 years

The working capital needed for project B will be released for investment elsewhere at the end of seven years. Wriston Company uses a 20% discount rate. (Ignore income taxes.)

Click here to view Exhibit 8B-1 and Exhibit 8B-2, to determine the appropriate discount factor(s) using tables.