Question: 7 Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial purposes over the next five years. Method one (implosion) is

 7 Dixie Dynamite Company is evaluating two methods of blowing up

7 Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial purposes over the next five years. Method one (implosion) is relatively low in risk for this business and will carry a 9 percent discount rate. Method two (explosion) is less expensive to perform but more dangerous and will call for a higher discount rate of 14 percent. Either method will require an initial capital outlay of $102,000. The inflows from projected business over the next five years are shown next Years Method 1 29,700 37,300 44,000 35,300 28,400 Method 2 S 22,600 31,800 41,900 33,100 74,000 4 Use Appendix B for an approximate answer but calculate vour final answers using the formula and financial calculator methods a. Calculate net present value for Method 1 and Method 2.(Do not round intermediate calculations and round your answers to 2 decimal places.) Net Present Value Method 1 Method 2 b. Which method should be selected u net present value analysis? Method 1 Method2 Neither of these

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