Hydro One has two options for upgrading a geothermal power station to meet new government standards. Option 1: Hydro One will make the upgrades themselves. This is expected to cost $10,700 at the end of every six months for 15 years. At the end of the operation (in 15 years) Hydro One expects to sell all equipment needed for the upgrade for $108,000. Option 2: Pay experienced contractors. This will cost $45,000 up front and $12,100 semi- annually for 13 years. Assume all interest is 2.46% compounded semi-annually. 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 = $ $ PMT = $ FV = $ $