X-treme Vitamin Company is considering two investments, both of which cost $34,000. The cash flows...
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X-treme Vitamin Company is considering two investments, both of which cost $34,000. The cash flows are as follows: Year Project A Project B $36,000 $34,000 2 6,000 16,000 18,000 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 years Project A year( Project B 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 ProjectA and Project B. Assume a cost of capital of 12 percent. (Do not round intermediate calculations and round your final answers to 2decimal places.) Net Present Value Project A Project B
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