hields Company has gathered the following data on a proposed investment project.Investment required in equipment$400,000Annual cash inflows$80,000Residual value$0Life of the investment10 yearsDiscount rate10%

Shields Company has gathered the following data on a proposed investment project.Investment required in equipment$400,000Annual cash inflows$80,000Residual value$0Life of the investment10 yearsDiscount rate10%

X co. ltd. invests in a new project initial investment 100000 wc requirement 10000 recovered in the full in year 5 cash flow 1 2 3 4 5 20000 8000 35000 43000 24000 rate of investment is 10%

Perit Industries has $180,000 to invest in one of the following two projects:  Project A Project BCost of equipment required $ 180,000   $ 0  Working capital investment required $ 0   $ 180,000  Annual cash inflows $ 32,000   $ 54,000  Salvage value of equipment in six years $ 9,300   $ 0  Life of the project 6 years 6 yearsThe 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 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.Required:Compute the net present value of Project A.Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.Compute the net present value of Project B.Note: Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.Which investment alternative (if either) would you recommend that the company accept?

Information for two alternative projects involving machinery investments follows:   Project 1 Project 2Initial investment $ (124,000) $ (94,000)Salvage value 0 14,000Annual income 13,640 12,960a. Compute accounting rate of return for each project.

An investment project costs $12,900 and has annual cash flows of $3,500 for six years.