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clear photos added Divio Dynamite Company is evaluating fwo thethods of blowing up od buldings for commetcial purposes oret the nex five years. Method one

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Divio Dynamite Company is evaluating fwo thethods of blowing up od buldings for commetcial purposes oret the nex five years. Method one (implosion) is refatively low in risk for this business and will carfy a 12 peecent discount rate. Mothod two \{explosion) is less expenswe to peiform but more dangerous and will call for a higher discount rate of 17 percent, Either mothod will require an iritial i capital outiay of $80,000 The inflows from projected busirtess over the next five years are thewn next. Use Aptendis 11 for an approsimate answer but calculate yout finat answers using the formula and fonancial cakulator methodt. a. Calculate net present value tor Method 1 and Method 2. (Do not round intermediate calculatiens and round your answers to 2 decimal places j b. Which method should be selected using net present value analysis? Method 1 Mothod? Neither of these Dixie Dynamite Company is evaluating two methods af blowing up old builitings for commercial purposes over the next five years. Method one (mplosion) is relatively law in risk for this business and will carry a 12 percent discount rate. Method two (explosion) is less expensive to perform but moce dangerous and will call for a higher discoum rate of 17 percent. Either method will require an initsil copital outlay of $80,000. The inflows from projected business over the next flue years are shown next. Use Agpendini for an approximate answer but cakculate your final answers using the formula and financial calculator methods. a. Calculate net present value for Method 1 and Method 2. (Do not round intermediate calculations and round your answers to 2 decimal places.) b. Which method should be selected using net present value analysis? Method 1 Method 2 Neither of these

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