Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial purposes over the
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Question:
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 percent discount rate. Method two explosion is less expensive to perform but more dangerous and will call for a higher discount rate of percent. Either method will require an initial capital outlay of $ The inflows from projected business over the next five years are shown next.
Years Method Method
$ $
Use Appendix B for an approximate answer but calculate your final answers using the formula and financial calculator methods.
Calculate net present value for Method and Method
Note: Do not round intermediate calculations and round your answers to decimal places.
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