Question: Ch 12 Homework Help Save & 1 1 CH Exercise 12-7 Net Present Value Analysis of Two Alternatives (L012-2) 15 poets Perit Industries has $180,000
Ch 12 Homework Help Save & 1 1 CH Exercise 12-7 Net Present Value Analysis of Two Alternatives (L012-2) 15 poets Perit Industries has $180,000 to invest The company is trying to decide between two alternative uses of the funds. The alternatives are 000 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 $180,000 $ $ 0 $180,000 $ 32,000 $ 54,800 $ 9,300 $ 6 years 6 years H The working capital needed for project will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 15% Click here to view Exhibit 128-1 and Exhibit 128.2. to determine the appropriate discount factor(a) 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? 1 Net present a proget A 2. Nel present value projet 5 Which investment strative either would you recommend that the company.com ME G HE C Prov 1.013 Score answer >
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