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Please help Dexie Dyriamite Compary is evaluoting two methods of blowing up old buildings for commercial purposes over the next five yotarf. Method one (implosion)
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Dexie Dyriamite Compary is evaluoting two methods of blowing up old buildings for commercial purposes over the next five yotarf. Method one (implosion) is relatively low in rtsk for this business and will carry a 12 percent discount rete. Method two (explosion) is less experisive to perfom but more dangerous and will call for a higher discount rate of 17 percent. Either method will recuire an initiaf capital cutfay of $85,000. The infiows from projected business over the next five years are shown next. Use Appondix B for an approximate answer but calculate your final answers using the formula and financial calculator methocts a. Gilculate not present value for Method 1 arid Method 2 Note: Do not round intermediete calculations and round your answers to 2 decimal pleces. b. Which method should be selected using net presient value analysis? Methed 1 Method 2 Neither of these Dexie Dyriamite Compary is evaluoting two methods of blowing up old buildings for commercial purposes over the next five yotarf. Method one (implosion) is relatively low in rtsk for this business and will carry a 12 percent discount rete. Method two (explosion) is less experisive to perfom but more dangerous and will call for a higher discount rate of 17 percent. Either method will recuire an initiaf capital cutfay of $85,000. The infiows from projected business over the next five years are shown next. Use Appondix B for an approximate answer but calculate your final answers using the formula and financial calculator methocts a. Gilculate not present value for Method 1 arid Method 2 Note: Do not round intermediete calculations and round your answers to 2 decimal pleces. b. Which method should be selected using net presient value analysis? Methed 1 Method 2 Neither of these Step by Step Solution
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