Please help with formulas X-treme Vitamin Company is considering two investments, both of which cost $42,000. The cash flows are as follows:Project A$44,00015,00015,000YearProject B$42,00014,00020,0002.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 Periodyear(s)Project AProject Byear(s)a-2. Which of the two projects should ce chosen based on the payback method? b-1. Calculate the net present value for Project A and Project B. Assume a cost of capital of 8 percent. (Do not round intermediatecalculations and round your final answers to 2 decimal places.)Net Present ValueProject AProject Bb-2. Which of the two projects should be chosen based on the net present value method?O Project BO Project Ac. Should a firm normally have more confidence in the payback method or the net present value method?

Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

X-treme Vitamin Company is considering two investments, both of which cost $42,000. The cash flows are as follows: Project A $44,000 15,000 15,000 Project B $42,000 14,000 20,000 Year 1 3 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 year(s) year(s) a-2. Which of the two projects should be chosen based on the payback method?

X-treme Vitamin Company is considering two investments, both of which cost $42,000. The cash flows are as follows: Project A $44,000 15,000 15,000 Project B $42,000 14,000 20,000 Year 1 3 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 year(s) year(s) a-2. Which of the two projects should be chosen based on the payback method?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Where does a buyer, who has no experience with a given supplier, gather the requiredinformation?
Write any two precautions of income method
How does the United States fare on quality of care?
Can you please directly answer the questions asked?
What are some of the metrics economists use to measure health outcomes?
How is healthcare affected by current Budgetary restrictions in England
How would you differentiate among needs assessments, process evaluations, and outcome evaluations?
U=x+y find MRSxy
Should government provide for health care
What is critical thinking and explain how it could be helpful for you as a student in Criminal Justice.
what is a health economist & what do they do?
How can insurance companies offer a guarantee to pay for certain medical expenses? How do they determine the appropriate premium to charge?