Question: Perit Industries has $ 1 7 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:Perit Industries has $ to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B
Cost of equipment required $ $
Working capital investment required $ $
Annual cash inflows $ $
Salvage value of equipment in six years $ $
Life of the project years 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
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