Government $xYZ$ is considering the addition of a road segment to the regional road system. Two options are available, and your task is to determine

which of these options is preferable from a financial perspective. Both projects have an estimated life span of $30$ years. The projected cash flows for

the two options are outlined in the Table below. Assume that the discount rate has been set at $8\%.$

Description of Cash Flow

Initial construction outlay

Maintenance outlay

Maintenance outlay

Salvage $($inflow$)$

Years passed before cash flow

is assumed to accrue

$1$

$10$

$15$

$30$

Option $1$: Projected cash flows

Option $2$: Projected cash flows

$-$$$10,000,000$

$-$$$200,000$

$-$$$800,000$

$$200,000$

$-$$$10,000,000$

$-$$$900,000$

$-$$$100,000$

$$1,000,000$

Which of the two projects would you recommend based on NPV analysis? To receive credit, you need to provide support for your answer by providing the NPV for each of the two options.