Question: Problem 12-10 (Algo) Payback and net present value [L.O12-3, 12-4] X-treme Vitamin Company is considering fwo investments, both of which cost $12,000. The cash flows

Problem 12-10 (Algo) Payback and net present value [L.O12-3, 12-4] X-treme Vitamin Company is considering fwo investments, both of which cost $12,000. The cash flows are as foliows Use Appenctix. B for an approximate answer but calculate your final answer using the formula and financiat cialator mebuas o-1. Calculate the payback period for Project A and Project B. Note: Round your onswers to 2 decimel ploces. -2. Which of the two projects should be chosen based on the netpresent vahe memod? Project B Project A c. Should a firm normally have more confidence in the paypack method or the net present valize nuethaid? Net present value method Payback method Problem 12-10 (Algo) Payback and net present value [L.O12-3, 12-4] X-treme Vitamin Company is considering fwo investments, both of which cost $12,000. The cash flows are as foliows Use Appenctix. B for an approximate answer but calculate your final answer using the formula and financiat cialator mebuas o-1. Calculate the payback period for Project A and Project B. Note: Round your onswers to 2 decimel ploces. -2. Which of the two projects should be chosen based on the netpresent vahe memod? Project B Project A c. Should a firm normally have more confidence in the paypack method or the net present valize nuethaid? Net present value method Payback method

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