Perit industries has $190,000 to invest. the company is trying to decide between two alternative uses of the funds. the alternatives are: project a project b cost of equipment required $ 190,000 $ 0 working capital investment required $ 0 $ 190,000 annual cash inflows $ 28,000 $ 48,000 salvage value of equipment in six years $ 8,900 $ 0 life of the project 6 years 6 years 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 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.
required:
1. compute the net present value of project a. (enter negative value 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 value with a minus sign. round your final answer to the nearest whole dollar amount.)
3. which investment alternative (if either) would you recommend that the company accept?
Answers: 3
Business, 22.06.2019 11:00, PastyMexican24
On analyzing her company’s goods transport route, simone found that they could reduce transport costs by a quarter if they merged different transport routes. what role (job) does simone play at her company? simone is at her company.
Answers: 1
Perit industries has $190,000 to invest. the company is trying to decide between two alternative use...
Spanish, 10.03.2020 04:58