Problem 13-16: NPV and selection between two options 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 10 percent discount rate. Method 2 (explosion) is more dangerous and will require a higher discount rate of 15 percent. Either method will require an initial capital outlay of $108,000. The expected cash inflows from projected business over the next five years are given below. Years 1 2 3 4 5 Method 1 $29,800 38,000 40,300 37,700 28,700 Method 2 $19,500 23,800 38,eee 35,600 76,700 a. (6 pts.) Calculate NPV for Method 1 and Method 2. (Do not rounid 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? Method 1 Method 2 Neither of these