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