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Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commerciel purposes over the next five years Method one (implosion) is relatively

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Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commerciel purposes over the next five years Method one (implosion) is relatively low in risk for this business and will carry a 12 porcent discount rate. Method two (explosion) is less expensive to perform but more dangerous and will call for a higher discount rate of 16 percent. Either method will require an initiat capital outioy of $107,000, The intlows from peojected business over the next five years are shown next. Use Abpendix for an approximate answer but calculate your final answers using the formula and financial calculator methods. a. Calculate net present value for Method 1 and Method 2. Note: Do not round intermediate calculations and round your answers to 2 decimal places. b. Which method should be selected using not present value analysis? Mothod 1 Method 2 Neither of these

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