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Top Notch Limited has $750,000 to Invest and is trying to decide between two alternative...

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Accounting

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Top Notch Limited has $750,000 to Invest and is trying to decide between two alternative uses of the funds. The alternatives are as follows: Cost of equipment required Working capital investment required Annual cash inflows Salvage value of equipment in seven years Life of the project $750,000 $ $210,00 $ se,eee 7 years 5 $750,00 $150,000 7 years The working capital needed for project will be released for investment elsewhere at the end of seven years. Top Notch uses a 20% discount rate. Required: 6. Calculate net present value for each project. (Hint: Use Microsoft Excel to calculate the discount factor(s) (Negative answers should be indicated by a minus sign. Do not round Intermediate calculations, Round the final answer to the nearest whole dollar, Do not leave any empty spaces: Input a 0 wherever it is required) Net Present Value Project A Project B b. Which investment alternative (If either would you recommend that the company accept? Project A Project B

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