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 Option 2 $82,760 $27,700 $29,760 Equipment purchase and installation Annual cash flow Equipment overhaul in year 3 Equipment overhaul in year S $71,400 $4,550 $5,620 Click here to view the factor table Calculate the net present value of the two opportunities. (Round present value factor calculations to 4 decimal places, e.g. 1.2514 and the final answers to O decimal places, e.g. 59,991.) Option 1 Option 2 Net present value$ 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: SIMILAR EXERCISE Which option should Bill choose? Bill should choose