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 $150,000160,000$

Annual cash outflows $70,00075,000$

Costs to rebuild $120,0000$

Salvage value $024,000$

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.)$

Determine which option Tulsa should select?