Problem 13-16: NPV and selection between two options 28 Western Dynamite Company is evaluating two new methods of blowing up buildings for commercial purposes over the next five years. Method 1 (implosion) is relatively low in risk for this business and will carry a 11 percent discount rate. Method 2 (explosion) is more dangerous and will require a higher discount rate of 16 percent. Either method will require an initial capital outlay of $93,000. The expected cash inflows from projected business over the next five years are given below. Years 1 2 3 4 1:37:20 Method 1 $35,700 45,900 50,500 42,500 21,900 Method 2 $23,200 24,100 37,800 37,700 77,500 Rook a. (6 pts.) Calculate NPV for Method 1 and Method 2. (Do not round Intermediate calculations. Round the final answers to the nearest whole dollar.) Net present value $ Method 1 Method 2 b. (3 pts) Which method should be selected using net present value analysis? O Method 1 Method 2 O Neither of these