Perit Industries has $$165,000$ 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 $14\%.$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

Compute the net present value of Project $A.$

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?Perit Industries has $$165,000$ to invest in one of the following two projects:

Project A Project B

Cost of equipment required $ $165,000$ $ $0$

Working capital investment required $ $0$ $ $165,000$

Annual cash inflows $ $21,000$ $ $56,000$

Salvage value of equipment in six years $ $9,500$ $ $0$

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 $14\%.$

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

Compute the net present value of Project A$.$

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?