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.

		Option 1		Option 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

	Option 1	Option 2
Net present value	$enter a dollar amount rounded to 0 decimal places	$enter a dollar amount rounded to 0 decimal places

	Option 1	Option 2
Profitability Index	enter profitability index rounded to 2 decimal places	enter profitability index rounded to 2 decimal places

Which option should Richard choose?

Richard should choose select an option Option 1 /Option 2.