Alectra Utilities has two options for upgrading a geothermal power station to meet new government standards. Option 1: Alectra Utilities will make the upgrades themselves. This is expected to cost $12,900 at the end of every three months for 13 years. At the end of the operation (in 13 years) Alectra Utilities expects to sell all equipment needed for the upgrade for $96,000. Option 2: Pay experienced contractors. This will cost $48,000 up front and $11,800 quarterly for 10 years. Assume all interest is 3.27% compounded quarterly. Round the answers to NPV (Option 1), and NPV (Option 2) to the nearest dollar. Round all other answers to two decimal places where applicable. 1) Find the net present value of option 1: Payments (Cost) P/Y = Sale of equipment (Residual) C/Y = N 11 1/Y = PV = PMT= FV = (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV (Option 1) = $ 21 Find the ner present value of option 2: 2) Find the net present value of option 2: Payments (Cost) PAY C/Y z 196 1/Y PV PMT A FV (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV (Option 2) = $ 3) Which option should Alectra Utilities choose? O Option 1 O Option 2 O Either option could be chosen