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Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial 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 commercial purposes over the next five years Method one (implosion) is relatively low in risk for this business and will carry a 12 percent discount rate. Method two (explosion) is less expensive to perform but more dangerous and will call for a higher discount rate of 17 percent. Either method will require an initial capital outlay of $85,000. The inflows from projected business over the next five years are shown next Years 1 2 3 4 5 Method 1 $30,000 38,200 39,300 36,300 25,700 Method 2 $20,2ee 22,180 37,100 29, eee 77,180 Use Appendix B 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 (Do not round Intermediate calculations and round your answers to 2 decimal places.) Net Present Value 1 Method 1 Method 2

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