Question: Exercise 12-7 (Algo) Net Present Value Analysis of Two Alternatives [LO12-2] Pent industries has $165,000 to invest. The company is trying to decide between two


Exercise 12-7 (Algo) Net Present Value Analysis of Two Alternatives [LO12-2] Pent industries has $165,000 to invest. The company is trying to decide between two aiternative uses of the funds. The alternatives are: 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%. Click here to view Exhibit 128-1 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 dollor omount.) 2 Compute the net present value of Project B. (Enter negotive values with o minus sign. Round your final answer to the nearest whole dollor amount) 3. Which investment alternative (if either) would you recommend that the company accept? EXHIBIT 12B-2 EXHIBI 12B-1 Present Value of $1;(1+r)n1
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