MapleTree Industries has $

$265$

$,$

$000$

$$to invest. The company is trying to decide between two alternative uses of the funds. The alternatives follows

$$ Project A Project B

Cost of equipment required $

$265$

$,$

$000$

$$

Working capital investment required $

$265$

$,$

$000$

$$

Annual Cash inflow $

$55$

$,$

$650$

$$ $

$42$

$,$

$400$

$$

Residue value of equipment in

$8$

$$years $

$21$

$,$

$200$

$$

Life of the project

$8$

$$years

$8$

$$years

The working capital needed for project B will be released at the end of eight years for investment elsewhere. Canada Fair Market interest rate is

$13$

$\%$

$$

Required:

Which Investment option would you recommend the company to accept? Please show separate calculations and formulas for each project using the NPV method.

$($

$$Please show me in your answers which of the formula you use for your calculation and no financial calculator or Excel calculation sheet to be used

$)$

$$pls do it accurately with each step.