3. 4 points Exercise 11-5 Custom Alternate Problem A company has $100,000 to invest. The company is trying to decide between two alternative f the funds. The alternatives are: uses ProjectJ $100,000 S0 $24,000 $15,000 5 years Project K Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in 5 years Life of the project 50 $100,000 $9,000 $0 5 years The working capital needed for project K will be released at the end of five years for investment elsewhere. The company's discount rate is 10%. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables Required: value for each (Any cash outflows should be indicated by a minus a. 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.) 10% PV Factor Present Value of Cash Flows Year Cash Flow Project J Purchase of equipment Now 1.000 Annual cash inflows 1-5 Salvage value Net present value Project K Working capital invested Now 1.000 Annual cash inflows 1-5 Working capital released 5 Net present value | |140|