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Perrot industries has $355,000 to invest. The company is trying to decide between two alternative...

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Accounting

Perrot industries has $355,000 to invest. The company is trying to decide between two alternative used of the funds. The alternatives follow:
A:
Cost of equipment required $310000
Working capital /
Annual cash inflows $70000
Salvage value of equipment in 6 years $21800
Life of the project 6 years
B:
Cost of equiment required /
Working capital investment required $310000
Anual cash inflows $55900
Salvage value of equipment in 6 years /
Life of the project 6 years
Calculate the net present value for each project
Project A =
Project B =
Which investment would you reccomend the company accept?
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