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 ow $28,900 $31,340 Equipment overhaul in year 6 $5,000 - Equipment overhaul in year 8 - $6,350 Click here to view the factor table. (a) Calculate the net present value of the two opportunities. (Round present value factor calculations to 4 decimal places, e.g. 1.2514 and the nal answers to 0 decimal places, 8.3. 5 9,991.) Option 1 Option 2 Net present value $ $ |t eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) Calculate the profitability index of the two opportunities. (Round answers to 2 decimal places, e.g. 15.25.) Option 1 Option 2 Profitability Index eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer( c). Which option should Richard choose? Richard should choose eTextbook and Media Save for Later Attempts: 0 of 3 used Submit