Perit Industries has $$110,000$ to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are:

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$$Project AProject BCost of equipment required$ $110,000$$ $0$Working capital investment required$ $0$$ $110,000$Annual cash inflows$ $20,000$$ $28,000$Salvage value of equipment in six years$ $8,100$$ $0$Life of the project$6$years$6$years

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The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries$$ discount rate is $15\%.$

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Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

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Required:

$1.$ Compute the net present value of Project A$.($Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.$)$

$2.$ 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.$)$

$3.$ Which investment alternative $($if either$)$ would you recommend that the company accept?