Oakville Hydro has two options for upgrading a natural gas power station to meet new government standards. Option 1: Oakville Hydro will make the upgrades themselves. This is expected to cost $14,900 at the end of each month for 13 years. At the end of the operation (in 13 years) Oakville Hydro expects to sell all equipment needed for the upgrade for $105,000. Option 2: Pay experienced contractors. This will cost $40,000 up front and $12,300 monthly for 12 years. Assume all interest is 3.01% compounded monthly. Round the answers to NPV (Option 1), and NPV (Option 2) to the nearest dollar. Round all other answers to two decimal places where applicable. 1) Find the net present value of option 1: Payments (Cost) PNY - Sale of equipment (Residual) C/Y - N W/Y - PV = PMT- $ FV = $ (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV (Option 1) = 5 2) Find the net present value of option 2: Payments (Cost) P/Y C/Y z I/Y PV PMT FV (If the NPV is negative, enter it as a negative nmber. If the NPV is zero, enter 0.) NPV (Option 2) 3) Which option should Oakville Hydro choose? Option 1 Option 2 Either option could be chosen