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X treme Vitamin Company is considering two investments, both of which cost $40.000. The cash flows are as follows 1$42,000 $40,000 22,00021,000 15,000 10,000 Use

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X treme Vitamin Company is considering two investments, both of which cost $40.000. The cash flows are as follows 1$42,000 $40,000 22,00021,000 15,000 10,000 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. (Round your answers to 2 decimal places.) Payback Period Project A Project B years years 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 12 percent. (Do not round intermediate calculations answers to 2 decimal places.) Net Present Value Project A

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