Question 1 Bill Zimmerman is evaluating two new business opportunities. Each of the opportunities shown below has a ten-year life. Bill uses a 12% discount rate. Option 1 $71,500 $27,400 $4,990 Option 2 $82,870 $29,570 Equipment purchase and installation Annual cash flow Equipment overhaul in year 3 Equipment overhaul in year 5 $6,070 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 o decimal places, e.g. 59,991.) Option 1 Option 2 Net present value $ LINK TO TEXT LINK TO VIDEO VIDEO SIMILAR EXERCISE Calculate the profitability index of the two opportunities. (Round answers to 2 decimal places, e.g. 15.25.) Option 1 Option 2 Profitability Index LINK TO TEXT LINK TO VIDEO VIDEO: STHILAR EXERCISE Which option should Bill choose? Bill should choose Click if you would like to Show Work for this question: Open Show Work LINK TO TEXT LINK TO VIDEO VIDEOSIMILAR EXERCISE Question Attempts: 0 of 3 used