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 $9$ percent discount rate. Method two $($explosion$)$ is less

expensive to perform but more dangerous and will call for a higher discount rate of $14$ percent. Either method will require an initial

capital outlay of $$102,000.$ The inflows from projected business over the next five years are shown next.

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 $2.$

Note: 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