Question: managerial acct, what would be the answer for project A following and how would it differ from the already worked out Project B. 3. Perit
managerial acct, what would be the answer for project A following and how would it differ from the already worked out Project B.

3. Perit Industries has $130,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in six years Life of the project Project 3130,000 $ 0 $ 22,000 $ 8,300 6 years Project $ 0 $130,000 3 33,000 $ 0 6 years The working capital needed for project will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 14%. Use the tables to determine the appropriate discount factor(s). Poiect 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.) Ty - PV of Now Year 6 spalp (130,000) 130,000 con inteng X 3.889 Years 1.6 33,000 WL x .456 (130,000) = 57,677 128,337 57,280
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
