I NEED HELP WITH OPTION 2 IN BOTH A AND B PLEASE

Jason Allen is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Jason uses a 12% discount rate.

		Option 1		Option 2
Equipment purchase and installation		$70,100		$81,950
Annual cash flow		$28,300		$30,500
Equipment overhaul in year 6		$4,740		-
Equipment overhaul in year 8		-		$6,010

Click here to view the factor table.

(a)

Calculate the net present value of the two opportunities. (Round present value factor calculations to 4 decimal places, e.g. 1.2514 and the final answers to 0 decimal places, e.g. 59,991.)

	Option 1	Option 2
Net present value	$120,247	$enter a dollar amount rounded to 0 decimal places

(b)

Calculate the profitability index of the two opportunities. (Round answers to 2 decimal places, e.g. 15.25.)

	Option 1	Option 2
Profitability Index	2.72	enter profitability index rounded to 2 decimal places