Perit Industries has $$140,000$ to invest in one of the following two projects:

Project A Project B

Cost of equipment required $ $140,000$ $ $0$

Working capital investment required $ $0$ $ $140,000$

Annual cash inflows $ $26,000$ $ $60,000$

Salvage value of equipment in six years $ $9,700$ $ $0$

Life of the project $6$ years $6$ years

The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries$$ discount rate is $17\%.$Perit Industries has $$140,000$ to invest in one of the following two projects:

The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries'

discount rate is $17\%.$

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?