Question: help please Capital Budgeting Decisions 671 CISE 14-7 Net Present Value Analysis of Two Alternatives LO14--2 Aint Industries has $100,000 to invest. The company is
Capital Budgeting Decisions 671 CISE 14-7 Net Present Value Analysis of Two Alternatives LO14--2 Aint Industries has $100,000 to invest. The company is trying to decide between two alternative s or the funds. The alternatives are Project A Project B Cost of equipment required $100.000 Working capital investment required $0 $0 $100,000 Annual cash inflows $21,000 $16,000 Salvage value of equipment in six years $8.000 $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 sewhere. Perit Industries' discount rate is 14%. Aquired Compute the net present value of Project A. Compute the net present value of Project B. Which investment alternative (if either) would you recommend that the company accept? ToI11
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