MATHEMATICS

Waterloo North Hydro has two options for upgrading a hydro-electric power station to meet new government standards. Option 1: Waterloo North Hydro will make the upgrades themselves. This is expected to cost $11,313!) at the end of every three months for 13 years. At the end of the operation [in 13 years] Waterloo North Hydro expects to sell all equipment needed for the upgrade for $103,0. Option 2: Pay experienced contractors. This will cost $25300 up front and 5514,1131?! quarterly for 11 years. Assume all interest is 2.132% compounded quarterly. Round the answers to NW {Option 1}, and NW [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: moreuummenmsmuan o' o' m _. I\" = 2.02 v' {34% 2.02 v" 54% PMT = $ 11800 $0 FV = 699699 X $ 108,000.00 (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV (Option 1) = $ -455347.00 2) Find the net present value of option 2: Payments (Cost) P/Y 4 v / C/Y 4 V N 44 VY 2.02 PV $ 183510.56 X PMT $ 14100 FV $ 6,61,576 X (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV (Option 2) = $ -433476.38 X