HELP ME FIND METHOD 1 AND 2 PLEASE

Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial purposes over the next ve 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 of17 percent. Either method will require an initial capital outlay of $110,000. The inflows from projected business over the next ve years are shown next. Years Method 1 Method 2 1 $33,800 $18,800 2 33,200 29,500 3 42,100 38,100 4 34,800 38,600 5 19,200 71,200 r Use Appendix B for an approximate answer but calculate your nal 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 Method 1 Method 2 b. Which method should be selected using net present value analysis? O Method 1 O Method 2 O Neither of these