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 $5,500 Click here to view the factor table. 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.) Option 1 Option 2 $ $ Net present value Calculate the profitability index of the two opportunities. (Round answers to 2 decimal places, e.g. 15.25.) Option 1 Option 2 Profitability Index Which option should James choose? James should choose V