Question: MUST DO ALL WORK AND PARTS EXERCISE 7-7 Net Present Value Analysis of Two Alternatives L07-2 Perit Industries has $100,000 to invest. The company is

MUST DO ALL WORK AND PARTS

MUST DO ALL WORK AND PARTS EXERCISE 7-7 Net Present Value Analysis

EXERCISE 7-7 Net Present Value Analysis of Two Alternatives L07-2 Perit Industries has $100,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 14%. Required: 1. Compute the net present value of Project A. 2. Compute the net present value of Project B. 3. Which investment alternative (if either) would you recommend that the company accept

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5. If yes, then why?

6. How would you design your ideal position?

4. What reaction would you expect of employees at the conventional level?