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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: The
Wriston Company has $300.000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are as follows: The working capital needed for project B will be released for investment elsewhere at the end of seven years. Wriston Company uses a 20% discount rate. (Ignore income taxes.) Click here to view Exhibit 13B-1 and Exhibit 13B-2. to determine the appropriate discount factor(s) using tables. Required: a. Calculate net present value for each project. (Negative amount should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount. Omit the "$" sign in your response.) b. Which investment alternative (if either) would you recommend that the company accept? Project A Project B
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