E11-11 (Static) Using NPV to Evaluate Mutually Exclusive Projects (LO 11-5) 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 Option A $ 320,000 150,000 70,000 120,000 Option B $ 454,000 160,000 75,000 Initial investment Annual cash inflows Annual cash outflows Costs to rebuild Salvage value Estimated useful life 24,000 3 years 3 years Required: Calculate NPV. (Euture 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.)