Please answer the two questions below with an explanation Q1) Q2)

Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Failure Acceptable Successful Alternative 1 Outcomes Probability 50 0.40 80 0.20 135 0.40 Alternative 2 Outcomes Probability 70 0.20 130 0.40 265 0.40 Alternative 3 Outcomes Probability 85 0.40 325 0.40 410 0.20 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Coefficient of Variation Q1 Rank Alternative 1 Alternative 2 Alternative 3 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 11 percent discount rate. Method two (explosion) is less expensive to perform but more dangerous and will call for a higher discount rate of 16 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 1 2 3 4. 5 Method 1 $32,100 38,500 47,800 35, 100 20,600 Method 2 $17,600 25,500 40,400 37,000 72,200 Use Appendix B for an approximate answer but calculate your 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 Q2 b. Which method should be selected using net present value analysis? O Method 1 O Method 2 O Neither of these