Richard Miller is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Richard uses a 12% discount rate.

Op 1 Op 2

Equipment purchase and installation $70,100 $81,430

Annual cash flow $28,900 $31,340

Equipment overhaul in year 6 $5,000 --------

Equipment overhaul in year 8 ---------- $6,350

Net Present Value for option 1 is $124,201

Net Present Value for option 2 is $129,458

Calculate the profitability index of the two opportunities.

Option 1 Profitability index =________

Option 2 Profitability index =________