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: Initial investment Annual cash inflows Annual cash outflows Costs to rebuild Salvage value Estimated useful life Option A $ 320,000 150,000 70,000 120,000 Option B $ 454,000 160,000 75,000 0 24,000 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 complete but not entirely correct. Option A: Year Cash Flows Present Value PV factor 11% 0 320,000 1-8 $ 5.1461 $ Initial Investment Annual Cash Flows Cost to Rebuild Salvage Net Present Value 320,000 80,000 (120,000) 0 4 411,688 (79,044) 0 12,644 0.6587 0.0000 x $ 8 Option B: Year Cash Flows Present Value PV factor 11% Initial Investment 0 454,000 1-8 $ 454,000 85,000 0 5.1461 $ 437,419 0 4 0.0000 x Annual Cash Flows Cost to Rebuild Salvage Net Present Value 8 24,000 0.4339 10,414 (6,168) $