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 $10$ percent discount rate. Method $2($explosion$)$ is less expensive to perform, but it is more dangerous and will require a higher discount rate of $15$ percent. Either method will require an initial capital outlay of $$100,000.$ The inflows from projected business over the next five years are given below.

Years Method $1$ Method $2$

$1$ $$25,000$ $$28,000$

$230,00032,000$

$338,00039,000$

$431,00033,000$

$519,00025,000$

a$.$ Calculate NPV for Method $1$ and Method $2.($Do not round intermediate calculations. Round the final answers to the nearest whole dollar.$)$

NPV

Method $1$ $

Method $2$ $

b$.$ Which method should be selected using NPV analysis?

multiple choice

Method $1$

Method $2$

Neither of these