Year 0 1 2 3 4 Lobo is a leading manufacturer of positronic brains, a key component in robots. The company is considering two alternative production methods. The costs and lives associated with each are: 10 Connect Practice Assign Method 1 Method 2 Method 1 $ 6,700 400 400 400 Assuming that Lobo will not replace the equipment when it wears out, what is the present value of both methods (r = 13%)? Ignore depreciation and taxes in answering. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) O Method 1 O Method 2 Method 1 Method 2 Method 2 $9,900 620 620 620 620 Based on present value, which method should Lobo buy? Present value O Method 1 O Method 2 $ $ If Lobo is going to replace the equipment, what is the present value of both methods (r = 13%) ? Ignore depreciation and taxes in answering. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) Saved Present value $ $ Based on present value, which method should Lobo buy?