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Business, 25.06.2019 10:20 nateconn9227

Perit industries has $140,000 to invest. the company is trying to decide between two alternative uses of the funds. the alternatives are: project a project b cost of equipment required $ 140,000 $ 0 working capital investment required $ 0 $ 140,000 annual cash inflows $ 23,000 $ 67,000 salvage value of equipment in six years $ 8,500 $ 0 life of the project 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 17%. click here to view exhibit 13b-1 and exhibit 13b-2, to determine the appropriate discount factor(s) using tables. required: 1. compute the net present value of project a. (enter negative values with a minus sign. round your final answer to the nearest whole dollar amount.) 2. compute the net present value of project b. (enter negative values with a minus sign. round your final answer to the nearest whole dollar amount.) 3. which investment alternative (if either) would you recommend that the company accept?

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