A firm that purchases electricity from the local utility is considering installing a steam generator. A large generator costs $$260,000$ whereas a small generator costs $$120,000.$ The cost of operating the generator would be $$250,000$ per year for the large and $$265,000$ for the small. Either generator will last for five years. The cost of capital is $12\%.$ For each generator option, assume immediate installation, with purchase and operating costs in the current year and operating costs continuing for the next four years. Assume payments under both options at the start of each year $($i$.$e$.,$ immediate, one year from now,..., four years from now$).$ What is the net present value of the more attractive generator? Please round your answer to the nearest dollar. Report the NPV of cost as a negative number.

$2.$ A prospective MBA student earns $$60,000$ per year in her current job and expects that amount to increase by $11\%$ per year. She is considering leaving her job to attend business school for two years at a cost of $$45,000$ per year. She has been told that her starting salary after business school is likely to be $$75,000$ and that amount will increase by $18\%$ per year. Consider a time horizon of $10$ years, use a discount rate of $12\%,$ and ignore all considerations not explicitly mentioned here. Assume all cash flows occur at the start of each year $($i$.$e$.,$ immediate, one year from now, two years from now,..., nine years from now$).$ Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What is the net present value of the more attractive choice? Please round your answer to the nearest dollar.