10.2 10.222 Perit industries has $125,000 to invest. The company is...
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10.2
10.222
Perit industries has $125,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit industries' discount rate is 15%. Click here to view Exhibit 14B-1 and Exhibit 148:2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative values 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 values with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (ff either) would you recommend that the company accept? Perit industries has $125,000 to invest. The company is trying to decide between two alternative uses of the funds. The aiternatives are: The working capital needed for project B will be released of the end of six years for investment elsewhere. Perit industries' discount rate is 15%. Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. Required: 1. Compute the net present value of Project A. (Enter negative values 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 values with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternatlve (of either) would you recommend that the company accept
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