Matthew Young is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Matthewuses a 12% discount rate.

		Option 1		Option 2
Equipment purchase and installation		$70,200		$82,000
Annual cash flow		$27,300		$29,700
Equipment overhaul in year 6		$4,700		-
Equipment overhaul in year 8		-		$6,050

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(a)

New attempt is in progress. Some of the new entries may impact the last attempt grading.

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	$enter a dollar amount rounded to 0 decimal places	$enter a dollar amount rounded to 0 decimal places

(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	enter profitability index rounded to 2 decimal places	enter profitability index rounded to 2 decimal places

please answer the question correctly.