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(b) Anthony Walker is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Anthony uses a 12% discount

(b) Anthony Walker is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Anthony uses a 12% discount rate. Equipment purchase and installation Annual cash flow Equipment overhaul in year 6 Equipment overhaul in year 8 Click here to view the factor table. (a) Net present value Option 1 $70,300 Option 1 Profitability Index $28,400 Calculate the net present value of the two opportunities. (Round present value factor calculations to 4 decimal places, e.g. 1.2514 and the final answers to 0 decimal places, e.g. 59,991.) $4,920 Option 1 Option 2 $82,160 $30,400 $ $6,340 Calculate the profitability index of the two opportunities. (Round answers to 2 decimal places, e.g. 15.25.) Option 2 Option 2

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