Chapter 14 Exercises/Problems Assignment Saved Help Save & Exit Submit 100 Check my wote 7 Perit Industries has $140,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: 1.48 points 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 $140,000 $ 0 $140,000 $ 23,000 $ 35,000 $ 8,400 $ D 6 years 6 years eBook Hint Print 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% References Click here to view Exhibit 14B-1 and Exhibit 14B-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 (If either) would you recommend that the company accept? Mc Graw