Perrot Industries has $345,000 to invest. The company is trying to decide between two alternative...
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Perrot Industries has $ to invest. The company is trying to decide between two alternative uses of the funds. The alternatives follow: The working capital needed for project B will be released at the end of six years for investment elsewhere. Perrot Industries' discount rate is Click here to view Exhibit and Exhibit to determine the appropriate discount factors using tables. Required: a Calculate net present value for each project. Negative amount should be indicated with a minus sign. Round discount factors to decimal places. Round other intermediate calculations and final answers to the nearest whole number. b Which investment alternative if either would you recommend that the company accept? Project A Project B
Perrot Industries has $ to invest. The company is trying to decide between two alternative uses of the funds. The alternatives
follow:
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perrot Industries' discount
rate is
Click here to view Exhibit and Exhibit to determine the appropriate discount factors using tables.
Required:
a Calculate net present value for each project. Negative amount should be indicated with a minus sign. Round discount factors
to decimal places. Round other intermediate calculations and final answers to the nearest whole number.
b Which investment alternative if either would you recommend that the company accept?
Project A
Project B
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