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. Tulsas cost of capital is 11 percent. The following estimates of the cash flows were developed by Tulsas 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			0
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.)

Option A:
Table or Calculator Function:	Present Value Annuity of $1
n =	8
i =	11	%
Cash Flows	Cash Flows	Discount Factor	Present Value
Annual Cash Flows	$80,000	5.1461	$411,680
Cost to Rebuild	120,000
Salvage	0	0	0
Capital Investment			320,000
Net Present Value
Option B:
Table or Calculator Function:	Present Value Annuity of $1
n =	8
i =	11	%
Cash Flows	Cash Flows	Discount Factor	Present Value
Annual Cash Flows	$85,000	5.1461	$437,410
Cost to Rebuild	0	0	0
Salvage	24,000
			$437,410
Capital Investment			454,000
Net Present Value

Please fill in discount factor on salvage and cost to rebuild and the present value boxes and the net present values