4. The Green Clinic is considering investing in new heart-monitoring equipment. It has two options. Option A would have an initial lower cost but would require a significant expenditure for rebuilding after 4 years. Option B would require no rebuilding expenditure, but its maintenance costs would be higher. Since the Option B machine is of initial higher quality, it is expected to have a salvage value at the end of its useful life. The following estimates were made of the cash flows. The Company's cost of capital is 8%: Initial Cost Annual cash inflows Annual cash outflows Cost to rebuild (end of year 4) Salvage Value Estimated Useful Life Option A $160,000 $71,000 $30,000 $50,000 Option B $227,000 $80,000 $31,000 $0 $0 7 years $8,000 7 years 1. Compute the net present value 2. Compute the IRR 3. Which option should be accepted