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Western Dynamite Company is evaluating two new methods of blowing up buildings for commercial purposes over the next five years. Method 1 (implosion) is relatively

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Western Dynamite Company is evaluating two new methods of blowing up buildings for commercial purposes over the next five years. Method 1 (implosion) is relatively low in risk for this business and will carry a 12 percent discount rate Method 2 (explosion) is less expensive to perform, but it is more dangerous and will require a higher discount rate of 17 percent. Either method will require an initial capital outlay $85,000. The inflows from projected business over the next five years are given below. Years 1 2 3 4 5 Method 1 $30,000 30,200 39,300 36,300 25,700 Method 2 $20,200 22,100 37.100 29,000 77.100 a. Calculate NPV for Method 1 and Method 2. (Round "PV Foctor" to 3 decimal places. Do not round intermediate calculations. Round the final answers to the nearest whole dollar) Net present value Method 1 Method 2 b. Which method should be selected using net present value analysis Method 1 Method 2 Neither of these

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