es Exercise 14-7 (Algo) Net Present Value Analysis of Two Alternatives [LO14-2] Perit Industries has $155,000 to invest in one of the following two projects: Project A $ 155,000 Cost of equipment required Working capital investment required. Annual cash inflows Salvage value of equipment in six years. Life of the project 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? $0 $ 25,000 $ 9,600 Project B 6 years Project B $0 $ 155,000 $ 57,000 $0 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 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. Note: 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. Note: 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? 6 years

Exercise 14-7 (Algo) Net Present Value Analysis of Two Alternatives [LO14-2] Perit Industries has $155,000 to invest in one of the following two projects: The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit industries' rate is 15%. Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriote discount factor(s) using tables. Required: 1. Compute the net present value of Project A. Note: 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. Note: 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? XHI 148-1 PresentValeeof$1:(1+r)n1 Present Value of an Anneity of $1 in Arrars, r1[1(1+r)21]