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Business, 08.07.2019 17:30 hella33revj

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 cost of equipment required $ 155,000 $ 0 working capital investment required $ 0 $ 155,000 annual cash inflows $ 25,000 $ 40,000 salvage value of equipment in six years $ 8,600 $ 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 14%. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables. required: 1. compute the net present value of project a. (enter negative value 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 value 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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