Question: NEED CORRECT ANSWER PLEASE Anthony Walker is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Anthony uses a

NEED CORRECT ANSWER PLEASE

NEED CORRECT ANSWER PLEASE Anthony Walker is evaluating two new business opportunities.

Anthony Walker is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Anthony uses a 12% discount rate. Option 1 Option 2 Equipment purchase and installation $70,300 $82,160 Annual cash flow $28,400 $30,400 Equipment overhaul in year 6 $4,920 Equipment overhaul in year 8 $6,340 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 O decimal places, e.g. 59,991.) Option 1 Option 2 $ LA Net present value (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

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