Waterloo North Hydro has two options for upgrading a hydro-electric power station to meet new government standards. Option 1: Waterloo North Hydro will make the upgrades themselves. This is expected to cost $10,000 at the end of every three months for 13 years. At the end of the operation (in 13 years) Waterloo North Hydro expects to sell all equipment needed for the upgrade for $99,000. Option 2: Pay experienced contractors. This will cost $39,000 up front and $13,000 quarterly (at the end of every three months) for 13 years. Assume all interest is 3.39% compounded quarterly. Round the answers to NPV (Option 1), and NPV (Option 2) to the nearest dollar. Round all otheranswers to two decimal places where applicable. 1) Find the net present value of option 1 : (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV ( Option 1) =? (rounded to the nearest whole number) 2) Find the net present value of option 2 : (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0 .) (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV ( Option 2) =$ (round to the nearest whole number) 3) Which option should Waterloo North Hydro choose? Option 1 Option 2 Either option could be chosen