James Smith is evaluating two new business opportunities $.$ Each of the opportunities shown below has a $15-$ year life $.$ James uses a $12\%$ discount rate $.$ Option $1$ Option $2$ Equipment purchase and installation $ $70,000$ $ $80,500$ Annual cash flow $ $27,000$ $ $29,000$ Equipment overhaul in year $6$ $ $4,500$ Equipment overhaul in year $8\backslash$$$5,500$