Problem 12-10 (Algo) Payback and net present value [LO12-3, 12-4] X-treme Vitamin Company is considering two investments, both of which cost $22,000. The cash flows are as follows: Year 1 Project A $ 25,000 2 3 12,000 8,000 Project B $ 22,000 11,000 14,000 Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods. a-1. Calculate the payback period for Project A and Project B Note: Round your answers to 2 decimal places. Answer is complete but not entirely correct. Payback Period Project A 2.60 Project B 2.82 year(s) year(s) e-2. Which of the two projects should be chosen based on the payback method? Project A Project B b-1. Calculate the net present value for Project A and Project B. Assume a cost of capital of 8 percent. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Net Present Value Project A Project B