Alpha Geek

(8)

$10/per page/Negotiable

About Alpha Geek

Levels Tought:
University

Expertise:
Accounting,Algebra See all
Accounting,Algebra,Architecture and Design,Art & Design,Biology,Business & Finance,Calculus,Chemistry,Communications,Computer Science,Environmental science,Essay writing,Programming,Social Science,Statistics Hide all
Teaching Since: Apr 2017
Last Sign in: 471 Weeks Ago, 2 Days Ago
Questions Answered: 9562
Tutorials Posted: 9559

Education

  • bachelor in business administration
    Polytechnic State University Sanluis
    Jan-2006 - Nov-2010

  • CPA
    Polytechnic State University
    Jan-2012 - Nov-2016

Experience

  • Professor
    Harvard Square Academy (HS2)
    Mar-2012 - Present

Category > Accounting Posted 17 May 2017 My Price 8.00

Perit Industries has $100,000 to invest

Perit Industries has $100,000 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  $100,000     $0   
Working capital investment required $0    $100,000   
Annual cash inflows $21,000     $     16,000
Salvage value of equipment in six years $8,000    $0   
Life of the project 6 years    6 years  
The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries' discount rate is 14%. (Ignore income taxes.)
Required
(a) Calculate net present value for each project. (Negative amount should be indicated by a minus sign. Round your answer to the nearest dollar amount. Omit the "$" sign in your response.)
(b)Which investment alternative (if either) would you recommend that the company accept?    

Answers

Alpha Geek
(8)
Status NEW Posted 17 May 2017 12:05 PM My Price 8.00

-----------

Attachments

file 1495024622-197447_1_636305432456602840_Perit-Industries.xlsx preview (150 words )
Wo-----------rki-----------ng -----------cap-----------ita-----------l r-----------ele-----------ase-----------dAn-----------nua-----------l c-----------ash----------- in-----------flo-----------wsI-----------tem-----------Net----------- pr-----------ese-----------nt -----------val-----------ue1------------6N-----------owW-----------ork-----------ing----------- ca-----------pit-----------al -----------inv-----------est-----------men-----------tPr-----------ese-----------nt -----------Val-----------ue -----------of -----------Cas-----------h F-----------low-----------s14-----------% F-----------act-----------orA-----------mou-----------nt -----------of -----------Cas-----------h I-----------nfl-----------ows-----------Pro-----------jec-----------t B-----------Sal-----------vag-----------e v-----------alu-----------e o-----------f t-----------he -----------equ-----------ipm-----------ent-----------Cos-----------t o-----------f t-----------he -----------equ-----------ipm-----------ent-----------Pro-----------jec-----------t A-----------Exp-----------lan-----------ati-----------on:-----------(b)-----------Whi-----------ch -----------inv-----------est-----------men-----------t a-----------lte-----------rna-----------tiv-----------e (-----------if -----------eit-----------her-----------) w-----------oul-----------d y-----------ou -----------rec-----------omm-----------end----------- th-----------at -----------the----------- co-----------mpa-----------ny -----------acc-----------ept-----------?Pr-----------oje-----------ct -----------B P-----------roj-----------ect----------- A -----------(a)----------- Ca-----------lcu-----------lat-----------e n-----------et -----------pre-----------sen-----------t v-----------alu-----------e f-----------or -----------eac-----------h p-----------roj-----------ect-----------. (-----------Neg-----------ati-----------ve -----------amo-----------unt----------- sh-----------oul-----------d b-----------e i-----------ndi-----------cat-----------ed
Not Rated(0)