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?

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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

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