Problem 12-10 Payback and net present value [LO12-3, 12-4] X-treme Vitamin Company is considering two investments, both of which cost $20,000. The cash flows are as follows: Year Project A Project B 1...

X-treme Vitamin Company is considering two investments, both of which cost $20,000. The cash flows are as follows:

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.)
  project A 0.87 years project B 1 year

b-1.Calculate the net present value for Project A and Project B. Assume a cost of capital of 8 percent.(Do not round intermediate calculations and round your final answers to 2 decimal places.)