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Brooks Chinc is considering investing in new heat monitoring Option would require no rebuilding expenditure, but its ma fe. The following estimates were made of

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Brooks Chinc is considering investing in new heat monitoring Option would require no rebuilding expenditure, but its ma fe. The following estimates were made of the cash flows. The ould have an intiallower cost but would on m ontage expenditure for rebulding after years. Salvage value at the end of its useful Inntal cost Annual cashindows Annual cash outflows Cost to rebuild (end of year 4) Salvage value Estimated useful Me Option $183,000 $70.000 $28.000 545.000 $0 years Option 15 $281.000 $80,000 $25,000 $0 $7,000 7 years Click here to view table (a) Compute the (1) net present value, (2) profitability index, and internal rate of return for each option in to solve for internal rate of retur, experiment with alternative discount rates to arrive at a net present value ofer) (r the net present value is negative revither a negative in pending the number 45 or these (45). Round answers for present value and IRR to O decimal places . 125 and round profitability index to decimal places . 12.50, For calculation purposes, we decimal places as displayed in the factor table provided.) Net Present Value Profitability Index Option A $ 20538 Options

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