You must procure a new network computer system for your company. You have a choice of two options. The two options are as follows:
                                         Option 1               Option 2
Cost                                  R30 000                 R40 000
Installation Cost             R10 000                 R5 000
Yearly Maintenance      R3 500                     R3 000
Yearly Profit                   R10 000                  R8 000
Project Lifetime            5 years                  8 years

Estimated rate of return Year 0,1,2,3 = 10%, Year 4,5,6 = 8%, Year 7,8 = 5%.

For Option 1:
The NPV for year 0 is:

The NPV for year 1 is:

The NPV for year 2 is:

The NPV for year 3 is:

The NPV for year 4 is:

 The NPV for year 5 is:

The NPV for option 1 is:

For Option 2:
The NPV for year 0 is:

 The NPV for year 1 is:

The NPV for year 2 is:

The NPV for year 3 is:

The NPV for year 4 is:

The NPV for year 5 is:

 The NPV for year 6 is:

The NPV for year 7 is:

The NPV for year 8 is:

The NPV for option 2 is:

 Which is the better option to choose?