Britney Javelin Company is considering two investments, both of which cost $$12,000.$ The cash flows are as follows: Use Appendix B and Appendix D$.$

Year Project A Project B

$1$ $$5,000$ $$4,000$

$25,0004,000$

$36,00011,000$

a$.$ Calculate the payback period for project A and project B$.($Round the final answers to $2$ decimal places.$)$

Payback period

Project A

years

Project B

years

b$-1.$ Calculate the NPV for project A and project B$.$ Assume a cost of capital of $8$ percent. $($Round $"$PV Factor" to $3$ decimal places. Round the intermediate and final answers to the nearest whole dollar.$)$

Net present value

Project A $

Project B $

b$-2.$ Which of the two projects should be chosen based on the NPV method?

multiple choice $1$

Project A

Project B

Both

c$.$ Should a firm normally have more confidence in answer derived based on NPV method or Payback method?

multiple choice $2$

NPV method

Pay back method