Question: can someone help with this problem Perit Industries has $100,000 to Invest. The company is trying to decide between two alternative uses of the funds.

can someone help with this problem
can someone help with this problem Perit Industries has $100,000 to Invest.

Perit Industries has $100,000 to Invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project A Project B $100,000 $0 $0 $100,000 $21,000 $15.750 $8,000 $0 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%. (Ignore income taxes.) Solve this problem using your financial calculator or Excel, NOT the tables in the chapter. Required: (a)Calculate net present value for each project. (Negative amount should be indicated by a minus sign. Round your answer to the nearest dollar amount. Omit the "S" sign in your response.) Project A Project B Net present value $ $ Get the active (b)Which investment alternative (if either) would you recommend that the company accept? (Click to select)

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