Question: Got the last part but need help with the first two Perit Industries has $135,000 to invest. The company is trying to decide between two

Got the last part but need help with the first two

Got the last part but need help with the first two Perit

Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project: A Project. 3 Cost. of equipment. required $135,000 5 0 lWorking capital investment required $ 0 $135,000 Annual cash inflows $ 22,000 5 66,000 Salvage value of equipment. in six years $ 0,400 $ 0 Life of the project 6 years 6 years ' The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 17%. Click here to view Exhibit 128-1 and Exhibit 123-2, to determine the appropriate discount factor(s} using tables. Required: 1. Compute the net present value of Project A. {Enter negative value with a minus sign. Round your nal answer to the nearest whole dollar amount.) 2. Compute the net present value of Project B. [Enter negative value with a minus sign. Round your nal answer to the nearest whole dollar amount.) 3. Which investment alternative (if either} would you recommend that the company accept? Net present value project A 2. Net present value project B 'ul'lr'l'lioh investment alternative (if either) would you reoorrlrrlend that the company accept

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