Question: Perit Industries has $ 1 1 5 , 0 0 0 to invest. The company is trying to decide between two alternative uses of the
Perit Industries has $ 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 A $ $ $ $ years Project B $ $ $ $ years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using tables. Required: Compute the net present value of Project AEnter negative values with a minus sign. Round your final answer to the nearest whole dollar amount. Compute the net present value of Project BEnter negative values with a minus sign. Round your final answer to the nearest whole dollar amount. Which investment alternative if either would you recommend that the company accept? Net present value project A Net present value project B Which investment alternative if either would you recommend that the company accept? Perit Industries has $ to invest. The company is trying to decide between two alternative uses of the funds. The
are:
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Indus
rate is
Click here to view Exhibit and Exhibit to determine the appropriate discount factors using tables.
Required:
Compute the net present value of Project
Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.
Compute the net present value of Project B
Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.
Which investment alternative if either would you recommend that the company accept?Fusweylerets
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