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X-treme Vitamin Company is considering two investments, both ofwhich cost $12,000. The cash flows are as follows:YearProject AProject B1$13,000$12,00025,0004,00036,00011,000Use Appendix B for an approximate answer but calculate yourfinal answer using the formula and financial calculatormethods.a-1. Calculate the payback period for Project Aand Project B. (Round your answers to 2 decimalplaces.) Payback PeriodProject Ayear(s)Project Byear(s)a-2. Which of the two projects should be chosenbased on the payback method? Project AProject Bb-1. Calculate the net present value forProject A and Project B. Assume a cost of capital of 8 percent.(Do not round intermediate calculations and round yourfinal answers to 2 decimal places.) Net Present ValueProject AProject Bb-2. Which of the two projects should be chosenbased on the net present value method? Project BProject Ac. Should a firm normally have more confidence inthe payback method or the net present value method? Payback methodNet present value method