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Fill in the remaining blanks please Hydro Ottawa has two options for upgrading a hydro-electric power station to meet new government standards. Option 1: Hydro

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Hydro Ottawa has two options for upgrading a hydro-electric power station to meet new government standards. Option 1: Hydro Ottawa will make the upgrades themselves. This is expected to cost $10,600 at the end of each month for 12 years. At the end of the operation (in 12 years) Hydro Ottawa expects to sell all equipment needed for the upgrade for $116,000. Option 2: Pay experienced contractors. This will cost $28,000 up front and $11,400 monthly (at the end of every month) for 14 years. Assume all interest is 3.6% compounded monthly. Round the answers to NPV (Option 1), and NPV (Option 2) to the nearest dollar. Round all other answers to two decimal places where applicable. 1) Find the net present value of option 1: (If the NPV is negative, enter it as a negative num ber. If the NPV is zero, enter 0. ) NPV ( Option 1)=$ (rounded to the nearest whole num ber) 2) Find the net present value of option 2 : (If the NPV is negative, enter it as a negative num ber. If the NPV is zero, enter 0. ) NPV ( Option 2) =$ (round to the nearest whole num ber)

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