PLEASE HELP ANSWERING THIS QUESTION THE LAST GUY DID NOT KNOW HOW TO SO I AM REPOSTING IT

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Perit Industries has $140,000 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	$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%.

Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables.

USE THIS FORMAT

Required a. Calculate net present value for each project. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s).) Now 4 6 Project A: $ 140,000 $ Purchase of equipment Annual cash inflows Salvage value Total cash flows Discount factor (17%) Present value Net present value 60,000 $ 26,000 60,000 $ 26,000 60,000 $ 26,000 60,000 $ 26,000 60,000 $ 26,000 60,000 26,000 9,700 95,700 1.000 95,700 9,700 0 0 0 0 0 $ 149,700 $ 1.000 149,700 $ 675,400 86,000 $ 1.000 86,000 86,000 $ 1.000 86,000 86,000 $ 1.000 86,000 86,000 $ 1.000 86,000 86,000 $ 1.000 86,000 Project B Working capital invested 1 $ Annual cash inflows orking capital released Total cash flows Discount factor (17%) Present value Net present value 0 $ 0 $ 0 $ 0 0 0