Your company is considering two options for a new toll road in Melbourne. Following the planning stage two potential routes have been identified. Before deciding upon which route to adopt the company decides to undertake a financial analysis of the projects. Option one has a projected lifetime of 20 years. It will cost $5 Million to purchase the land, $100,000 for the survey works and $2.5 Million for construction. The road will require 100 toll staff whose annual salary will be $25,000 each and 50 maintenance staff whose annual salary will be $20,000. The tolls will be $5 per car and $10 per lorry. It is projected that 750,000 cars and 100,000 lorries will use the road per year. At the end of the project the land will have a resale value of $4 Million. In option two an existing road will be upgraded at a cost of $2 Million, but will require 100 toll staff and 75 maintenance staff (salaries same as option one). The land will be worth $1.5 million at the end of the project, which has a projected lifetime of 30 years. The project has the same annual benefit as Option one. Using a discount rate of 5% determine Net Present Value of each option.

Group of answer choices Option one NPV= $7.6M; Option two NPV= $2M Option one NPV= $14.41M; Option two NPV= $12.16M Option one NPV= $60M; Option two NPV= $30M Option one NPV= $144.1M; Option two NPV= $121.6M