Please show all working out for the following question:

Option 1: Slim Tech production The Slim Tech machinery with its delivery and installation shall cost $1,000,000 and has an expected life of 4 years. The management estimates that they shall need additional net working capital of $25,000 for smooth running of the project. The machinery is expected to depreciate to zero on a straight-line basis with an expected salvage value of $50,000 at the end of Year 4. To save on investment costs, the management intends to use a piece of land currently being used as a car parking lot. TSL generates $200,000 a year through parking fees. TSL also requires to train its staff on the new machinery and that shall cost $50,000 in the first year. The collective cost of various components to be manufactured is estimated to be $2,000,000 in Year 1 with an expected increase of 3% per annum each year in the associated costs. The company will also pay an ongoing maintenance fees to the vendor of $150,000 a year.

Option 2: Smart Tech Smart Tech model has an expected life of 6 years and that TSL has already worked out its overall cost using NPV method and it is estimated to be $8,000,000. The applicable tax rate is 30% and the required rate of return is 10% p.a. Required: Evaluate the two given options and make recommendations to TSL about the model they should choose ?