MatthewYoung is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Matthew uses 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

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