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Business, 06.08.2019 18:10 juliapreciiado

Perit industries has $135,000 to invest. the company is trying to decide between two alternative uses of the funds. the alternatives are: project a project bcost of equipment required $ 135,000 $ 0working capital investment required $ 0 $ 135,000annual cash inflows $ 25,000 $ 63,000salvage value of equipment in six years $ 9,800 $ 0life of the project 6 years 6 yearsthe 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 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables. required: 1. compute the net present value of project a. (enter negative value with a minus sign. round your final answer to the nearest whole dollar amount.)2. compute the net present value of project b. (enter negative value with a minus sign. round your final answer to the nearest whole dollar amount.)3. which investment alternative (if either) would you recommend that the company accept?

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