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 in love Annual cash outflows Costs to rebuild Salvage value Estimated useful life Option $ 320,000 150,000 70,000 120,000 Option B $ 454,000 160,000 75,000 8 years 24,000 3 years Required: Calculate NPV. (Future Value of $1. Present Value of $1. Future Value Annuity of S1. 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.) Option : Cash Flows Py factor Present Value Initial Investment Annual Cash Flows Cost to Rebuild Salvage Net Present Value Option : Cash Flows PV factor Present Value Option A: Year Cash Flows PV factor Present Value Initial Investment Annual Cash Flows Cost to Rebuild Salvage Net Present Value III de 11 00 AHHH 1111 Option B: Cash Flows 12 9 Initial Investment Annual Cash Flows Cost to Rebuild Salvage Net Present Value Determine which option Tulsa should select? Option B Option A