Waterloo North Hydro has two options for upgrading a nuclear power station to meet new government standards. Option 1: Waterloo North Hydro will make the upgrades themselves. This is expected to cost $14,900 at the end of every three months for 15 years. At the end of the operation (in 15 years) Waterloo North Hydro expects to sell all equipment needed for the upgrade for $123,000. Option 2: Pay experienced contractors. This will cost $37,000 up front and $10,300 quarterly for 15 years. Assume all interest is 3.86% compounded quarterly. Round the answers to NPV (Option 1), and NPV (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: Payments (Cost) PAY = Sale of equipment (Residual) C/Y = N I/Y = % % PV = $ $ PMT= $ $ FV = $ $ (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV (Option 1) = $ 2) Find the net present value of option 2: Payments (Cost) P/Y C/Y N I/Y % PV $ PMT FV $ (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV (Option 2) = $ Waterloo North Hydro has two options for upgrading a nuclear power station to meet new government standards. Option 1: Waterloo North Hydro will make the upgrades themselves. This is expected to cost $14,900 at the end of every three months for 15 years. At the end of the operation (in 15 years) Waterloo North Hydro expects to sell all equipment needed for the upgrade for $123,000. Option 2: Pay experienced contractors. This will cost $37,000 up front and $10,300 quarterly for 15 years. Assume all interest is 3.86% compounded quarterly. Round the answers to NPV (Option 1), and NPV (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: Payments (Cost) PAY = Sale of equipment (Residual) C/Y = N I/Y = % % PV = $ $ PMT= $ $ FV = $ $ (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV (Option 1) = $ 2) Find the net present value of option 2: Payments (Cost) P/Y C/Y N I/Y % PV $ PMT FV $ (If the NPV is negative, enter it as a negative number. If the NPV is zero, enter 0.) NPV (Option 2) = $