Question: EXERCISE 13?14 Net Present Value Analysis of Two Alternatives [LO1] Wriston Company has $300,000 to invest. The company is trying to decide between two alternative

EXERCISE 13?14

Net Present Value Analysis of Two Alternatives [LO1]

Wriston Company has $300,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are as follows (see attachment).

The working capital needed for project B will be released for investment elsewhere at the end of seven years. Wriston Company uses a 20% discount rate. Required: (Ignore income taxes.) Which investment alternative (if either) would you recommend that the company accept? Show all computations using the net present value format. Prepare separate computations for each project.

EXERCISE 13?14 Net Present Value Analysis of Two Alternatives [LO1] Wriston Company

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