5 1 points Exercise 12-7 (Algo) Net Present Value Analysis of Two Alternatives [LO12-2] Perit Industries has $210,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: +Book Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project H References Project A $210,000 50 Project B 5.0 $ 30,000 $210,000 $ 52,000 $ 9,100 6 years 5.0 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 15% Click here to view Exhibit 12B-1 and Exhibit 128-2. 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? 1. Net present value project A 2. Net present value project B 3 Which investment alternative (d ether) would you recommend that the company accept? EXHIBIT 128-1 Present Value of $1; 1 (1+7) Periods 4% 596 969 1 09620952 2 0.925 0.907 0390 7% 0.943 0.935 0373 8% 12% 13% 14% 3 0.889 0.864 0.840 0816 4 0855 0.823 0.792 0.763. S 6 0.790 0.746 0.705 0.666 0630 7 0.7600711 0.665 % 0.731 0.677 0.627 0592 0.540 9 10. 11 0650 0.5850527 12 0625 0.557 0497 0444 13 14 35 16 17 18 0314 0455 0.394 0.339 0292 0252 0218 0188 0163 014 0513 0436 0371 0317 0270 0231 0199 0170 0146 0494 0416 0.350 0296 0250 0212 0.180 0.151 0130 0.125 19 26 21 0101 0063 23 0.00074 24 25 26 27 0.076 26 19 30 40 20% 9% 10% 11% 0.800 0820 0813 0.806 0362 0833 0.826 0926 0.917 0909 0.901 0.593 0885 0.877 0870 0.650 0.640 0.672 0.661 0.694 0.683 0.857 0.542 0526 0.769 0.756 0.743 0.783 0.812 0.797 0.731 0.718 | 0.706 0.609 0.564 0712 0693 0675 0624 0731 0641 0.593 0.579 0.794 | 0.772 | 0,751 0.551 0.537 0524 0.512 0655 0.410 0.482 0451 0.437 0423 0.467 0659 0.735 0.708 0681 0.592 0.572 | 0.552 0616 0613 0.534 0.516 | 0.499 0328 0.341 0822 0.784 0.747 0713 0681 0650 0355 0402 0386 0.370 0621 0593 0.561 0.519 0.543 0497 0476) 0456 0437 0419. 0.335 0319 0303 0275 0.262) 0.390 0.596 0.564 0.335 0.507 0.450 0.456 0432 0410 0370 0.352 0547 0.513 0.482 0.452 06230583. 0425 0.400 0.279 0.263 0.249 0.235 0.222 0376 0154 0333 0314 0.296 0.204 0.191 0179 0.168 0502 0.467 0434 0404 0.376 0.351 0.327 0.305 6.285 0266 0249 0.233 0.218 0.203 0645 0592 0544 0500 0.460 0.424 0391 0361 0.284 0333 0.306 0263 0.155 0.144 0.134 0.243 0225 0.209 0.194 0.180 0.167 0614 0.558 0.508 0.176 0356 0.352 0.322 0295 0270 0.247 0227 0208 0191 0.162 0676 0.149 0107 0.137 0.461 0422 0126 0.116 0475 0429 0388 0350 0317 0287 0261 0.237 0148 0215 0195 0178 0.162 0135 0.123 0.112 0103 0.094 0056 0397 0356 0319 0286 0257 0231 0208 0187 0.168 0152 0137 0124 0.112 0.102 0.092 0.069 0.083 0.076 0601 05300469 0415 0168 0326 0290 0.258 0229 0204 0182 0163 0.145 0130 0116 0.104 0091 0.084 0068 0075 0.061 0.055 0371 0.505 0442 0388) 0.340 0299 0263 0232 0044 0205 0181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.049 0069 0062 0.055 0555 0481 0417 6362 0.315 0.275 0.219 0209 0.183 0160 0.140 0.123 0.108 0095 0.054 0.0740065 0057 0.051 0045 0.040 0.035 0123 0107 0.093 0081 0071 0.062 0.054 0.047 0.042 0036 0.032 0.025) 0.108 0093 0.050 0.069 0.060 0.032 0045 0.039 0.034 0030 0.026 0023 6111 0.095 0081 0.069 0.059 0.051 0.044 0018 0032 0.028 0034 0.021 0.018 0475 0.306 0.031 0271 0212 0194 0164 0134 0116 0095 0.053 0070 0060 0051 0043 00370031 0027 0023 0.020 0017 0014 0456 0377 0312 0258 0215 0178 0149 0.124 0.104 0.067 0.0730061 0051 0.041 0.037 0.031 0026 0.022 0.019 0.016 0.014 0.012 0439 0359 0294 0.242 0.199 0164 0135 0112) 0.093 00370064 0053 0044 0017 0011 0.026 0.022 0.018 0015 0015 0011 0009 0422 0342 0.278 0226 0184 0.150 0123 0065 0056 0046 0018 0012 0026 0022 0015 0015 0015 001 0.009 0.007 0406 0326 0262 0.211 0170 0135 0112 0.060 0049 0040 0033 0027 0022 0018 0015 0012 0.010 0.009 0.007 0006 030 0310 0347 0.199 0.14 0.126 0.102 0052 066 0053 0043 0035 6028 0021 0019 0015 0015 0010 0.008 0.007 0.006 0.005 0375 0295 0231 0154 0146 0116 0092 0014 0059 0047 0.018 0.030 0624 0020 0016 0015 0010 0009 0.007 0.006) 0.005 0.004 0361 0211 0220 0172 0135 106 0.004 0.0660053 0.042 0.033 0026 0.021 0017 0014 0011 0.009 0.007 0.006 0.0050004 0.001 0.341 0348 0207 0161 0125 009 0060 0047 0017 0029 0.018 0014 001 0.009 0.007 0.006 0.001 0.004 0.003 0333 0355196 0150 0116 6000 00690054 0.042 0015 0026 610 00160012 0010 0.008 0.000 0.001 0.004 0.003 0.002 0371 0341 ISO 0107 00 00S 00440037 0029 0.002 0017 0014 00110009 000000050004 0.005 0.002 0.002 0000474 0109 0015 0015 004 DON 0024 600 0015 0012 0.0090001 0.30% 814 ||009 | 0.067 100400x210072 0015 0011 0.00800050004 000 00020001 15% 16% 1796 18% 19% 21% 22% 239 24% 25% 0855 0.347 0540 0289 0.210 0.002 0.002 0.002 000 000 000 0001000 000000 0.00000000000 0.003 NE 0000 BIT 12B-2 nt Value of an Annuity of $1 in Arrears, 1/1-(1/(1+r)')) riods 1 4% 5% 0962 0.952 6% 0.943 9% 0.926 0917 2 1.886 1.859 1.833 1.808 1.783 1.759 3 2.775 2.723 2.673 2.624 2577 2.531 4 3.630 3.546 3.465 3.387 3.312 5 4.452 4329 4212 4.100 6 5.242 5076 4917 7 6.002 5.786 5.582 8 6733 6463 6210 9 4.767 5.389 5971 7.435 7.10K 6.802 6.515 3.859 4.288 4.799 4.639 5.132 4946 10 11 1117.722 7360 7024 8.760 306 7887 7.499 5.426 5216 12 13 14 9295 15 11.118 10.380 9712 9 10% 16 11.652 10 835 10.106 9447 WAS1 19 12 166 11.274 10.477 9763 9.122 344 18 12 659 11 690 10 825 10 059 9372 756 19 13.134 12 085 11.158 10 336 9 604 950 365 20 21 13.590 12.462 11470 14 029 12.821 11 764 10 594 98189129 10.836 10.017 9292 22 14451 11.163 12 042 11.061 10 201 23 14 557 13 469 12.303 11 272 10 371 24 15.247 11.799 12.550 11 469 10529 9.442 9.580 9707 8.955 8348 25 15622 14 094 12.783 11.654 10675 9821 9.077 26 15.983 14.375 13.00% 11.526 10 810 9.929 9.161 422 41 27 16.330 14 643 13 211 11 987 10.935 10 027 9.237 548 28 16 663 14 896 13406 12.137 11051 10116 9307 602 29 16984 15.141 13.591 30 17.292 15372 13 765 12 409 40 12.278 11.158 10.195 9.370 11 255 10274 9437 19.791 17.159 15.046 13.332 11.925 10.757 9.179 22% 21% 20% 19% 17% 18% 16% 11% 12% 14% 13% 15% 10% 0.813 8% 7%6 0.826 0.820 0.855 0.847 0.840 0.833 0.893 0.885 0377 0.870 0.862 0909 0.901 0.935 1.566 1.385 1.547 1.528 1.509 1.492 1.474 1.690 1.668 1.647 1626 1.605 1.713 1.736 2.174 2.140 2.283 2.246 2.210 2.487 2444 2.402 2.361 2.322 2.639 2.589 2.974 2.914 2.855 2.798 2.743 2.690 3.170 3.102 3.037 3.240 2.864 2.803 2.926 3.058 2.991 3.352 3.274 3.199 3.127 3.167 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.245 3410 3.326 3.589 3.498 3.998 3.685 4.111 3.161 4.623 4.486 4.355 4.231 3.416 3.327 3.242 3.706 3.605 3.508 3.922 3.812 4712 4564 4423 4.868 3.518 5.206 5.013 3.726 3.619 3421 3.329 3.954 3837 4078 5.335 5.535 5.146 4.968 3.673 3.566 3.463 5.747 3.786 4.303 4.163 4031 3.905 6247 5.995 5.759 5.537 5.328 4.192 4.054 3.923 3.799 4.659 4.494 4.339 6.710 6418 6.145 5.889 5.650 4035 3.902 3.776 3.656 4.177 4336 4656 4.486 4.327 6207 5935 5.687 5.453 5.234 5029 3.985 7.139 6805 6495 3.851 4.611 4.439 4278 4.127 4988 4.795 7.536 7.161 6814 6.492 6.194 5.915 5.660 5421 5.197 4.201 4.053 3912 3.780. 8384 7943 9.385 8.863 5.342 5.118 4.910 4.715 4.533 4362 9.986 9.394 8853 8.358 7.904 74877.103 6.750 6424 6.122 5.542 5.583 3.962 3824 4.611 5.229 5.008 4.802 4432 4.265 4.108 6.302 6.002 5.724 5.468 8.745 244 7.756 7.367 6982 6.628 3.859 10.563 9899 4.001 4315 4153 4876 4.675 4459 3.092 3375 5324 5.847 6462 6142 6.811 5061 7606 7.191 559 4.189 4033 3.887 5.954 5.668 5405 5.162 4918 4730 4536 4.357 311 7824 7379 6974 66046.2653 4219 4.059 3.910 8022 7.549 7120 6.729 6373 6047 5.749 5.475 5222 4990 4775 4.576 4.391 4.050 3.928 4419 4243) 7250 6540 6 467 6128 58185.534 5273 5.033 4812 4.608 2017-702 5.070 4.843 4.635 4442 4.263 4097 3.942 7819 7.366 6938 6550 61955.877 5.584 5316 4.870 5.628 5.355 5.101 7.025 6623 6.259 1929 4.657 4460 4.279 4.110 1954 514 1963 7469 4675 4476 4.292 5975 5665 5.384 5.127 4.891 4.121 3963 649 075 1562 7.102 6687 6312 5410 5.149 4.909 4.690 4455 4302 7728.176 7.645 7.170 6741 6359 6011 5696 4311 4.925 4.137 5.432 4.703 4499 3.976 5.167 6.792 6399 6.044 5.723 8883 8.266 7.718 7.230 5.431 4937 4713 4.507 5.182 4318 4143 3981 6315 7764 7.283 6414 6073 5.746 4.323 4347 5.766 5467 5.195 4.948 4.721 4.314 3.983 7.330 6873 7341 6464 6097 4328 5.206 4.1313988 5.783 6.4916.118 4956 4.728 4.520 15.410 7.596 7372 6.906 $215 4.964 4734 6314 6136 5.798 5493 4.524 4332 4.154 3.990 7943 7409 6915 4.970 4.739 4.528 4.335 4.137 3.992 7984 7441 6961 6554 6152 5810 5.502 5223 4.531 4.337 4.159 1994 650 .022 7470 6983 6551 6166 5.320 3310 3.229 4.975 4743 4534 4339 4.160 3.995 5.694 055 7496 7.003 6566 6177 5829 3517 3235 4.979 4746 4344 4.343 951244 7.634 7.10% 6642 6233 5871 5.548 5255 4.997 23% 24% 25% 0.806 0.800 1.457 1.440 2.106 2.074 2.042 2011 1.981 1952 2.540 2.494 2448 2.404 2.362 2.745 2.689 3.784 3.092 3.020 2.951 4.160 4.039 4.487 4.344 4.207 4.772 4 607 4451 5.019 4.833 3.682 3.571 3.725 41303970 4.760 4166999