John Johnson is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. John uses a 12% discount rate. Option 1 Option 2 Equipment purchase and installation $ 70,200 $ 82,120 Annual cash flow $ 28,600 $ 31,070 Equipment overhaul in year 6 $ 4,810 Equipment overhaul in year 8 $ 6,250 Click here to view the factor table. (a) X Your answer is incorrect. 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 $ 87963 89,876 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 Taythaaland Media