Tulsa Company is considering investing in new bottling equipment and has two options: Option A has a lower initial cost but would require a significant expenditure to rebuild the machine after four years; Option B has higher maintenance costs, but also has a higher salvage value at the end of its useful life. Tulsa's cost of capital is 11 percent. The following estimates of the cash flows were developed by Tulsa's controller. Option A Option B Initial investment $ 320, 000 $ 454, 000 Annual cash inflows 150, 000 160, 000 Annual cash outflows 70, 000 75, 000 Costs to rebuild 120, 000 Salvage value 0 24, 000 Estimated useful life 8 years 8 years Required: Calculate NPV. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amounts should be indicated by a minus sign. Round your "Present Values" to the nearest whole dollar amount.) * Answer is not complete. Option A: Year Cash Flows PV factor Present Value 11% Initial Investment 0 320,000 Annual Cash Flows 1-8 s 80,000 5.1461 $ 411,689 Cost to Rebuild 4 (120,000) 0.6587 Salvage 8 Net Present Value $ 12,642 Option B: Year Cash Flows PV factor Present Value 11% Initial Investment 0 Annual Cash Flows 1-8 Is 8,500 X $ 437,420 Cost to Rebuild 4 Salvage 8 24,000 Net Present Value