Question: Exercise 12-7 (Algo) Net Present Value Analysis of Two Alternatives [LO12-2] Perit Industries has $150,000 to invest. The company is trying to decide between two


Exercise 12-7 (Algo) Net Present Value Analysis of Two Alternatives [LO12-2] Perit Industries has $150,000 to invest. The company is trying to decide between two alternative ises 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 industrios' discount rate is 15% Click here to view Fxhbit 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. Aound 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 (f either) would you recornmend that the company accept? FXHIBIT 12B1 Present Value of 51:(1+r)n1 PXIIIBIT 12B.2
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