Roger Rosich saved $250,000 during the 25 years that he worked for a major corporation. Now he has retired at the age of 50 and has begun to draw a comfortable pension check every month. He wants to ensure the financial security of his retirement by investing his savings wisely and is currently considering two investment opportunities. Both investments require an initial payment of $188,500. The following table presents the estimated cash inflows for the two alternatives.

	Year 1			Year 2			Year 3			Year 4
Opportunity #1	$	55,655		$	58,820		$	78,940		$	101,330
Opportunity #2		103,400			109,100			17,600			15,900

a-1Compute the net present value of each opportunity. (Round your intermediate calculations and final answers to 2 decimal places.)

Mr. Rosich decides to use his past average return on mutual fund investments as the discount rate; it is 8 percent. (PV of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.)