Two new instruments are being considered for an engineering firm. The firm uses a 12%/year expected rate of return for decisions of this type. The relevant characteristics for each option are shown below. Both options are expected to be long term (no end date). Assume the equipment has no economic value after the end of its estimated life.

Please use Least Common Multiple method to determine which option should be picked.

	Option 1	Option 2
Initial Investment	$120,000	$85,000
Estimated Life	12 years	9 years
Expected Annual Return	$17,500	$16,100

1. What Option1's NPV using Least Common Multiple Method?
2. What Option2's NPV using Least Common Multiple Method?
3. Which option should be picked using LCM?