David Davis is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. David uses a 12% discount rate. Option 1 Option 2 Equipment purchase and installation $72,000 $82,500 Annual cash flow $28,400 $30,750 Equipment overhaul in year 6 $4,720 Equipment overhaul in year 8 $5,860 Click here to view the factor table. (a) Your answer is correct. 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 O decimal places, e.g. 59,991.) Option 1 Option 2 $ 119037 $ $ 124567 Net present value (b) Calculate the profitability index of the two opportunities. (Round answers to 2 decimal places, e.g. 15.25.) Option 1 Option 2 Profitability Index