X$-$treme Vitamin Company is considering two investments, both of which cost $$14,000.$ The cash flows are as follows: X$-$treme Vitamin Company is considering two investments, both of which cost $$14,000.$ The cash flows are as follows:

Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a$-1.$ Calculate the payback period for Project A and Project B$.$

Note: Round your answers to $2$ decimal places.

$a-2.$ Which of the two projects should be chosen based on the payback method?

Project A

Project B

b$-1.$ Calculate the net present value for Project A and Project B$.$ Assume a cost of capital of $8$ percent.

Note: Do not round intermediate calculations and round your final answers to $2$ decimal places.

Year Project A Project B

$1$ $ $16,000$ $ $14,000$

$26,0005,000$

$34,0009,000$

Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator methods.

a$-1.$ Calculate the payback period for Project A and Project B$.$