Alectra Utilities has two options for upgrading a nuclear power station to meet new government standards. X Option 1: Alectra Utilities will make the upgrades themselves. This is expected to cost $10,300 at the end of each month for 13 years. At the end of the operation in 13 years) Alectra Utilities expects to sell all equipment needed for the upgrade for $102,000. Option 2: Pay experienced contractors. This will cost $34,000 up front and $11,300 monthly for 14 years. Assume all interest is 3.56% compounded monthly. Round the answers to NPV (Option 1), and NPV (Option 2) to the nearest dollar. Round all other answers to two decimal places where applicable. 1) Find the net present value of option 1: Payments (Cost) Sale of equipment (Residual) P/Y = C/Y = N = I/Y = % % PV = TA $ PMT= $ $ FV = $ TA UTIL 8 BUSIess investment DECISIONS QUIZ (TO HIDE KS (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) X NPV (Option 1) = $ 2) Find the net present value of option 2: Payments (Cost) P/Y C/Y N I/Y % PV $ PMT $ FV $ (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) E NPV (Option 2) = $