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Brooks Clinic is considering investing in new heart-monitoring equipenent. It has two opticns. Option A would hwe an initial fower cost but would require a

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Brooks Clinic is considering investing in new heart-monitoring equipenent. It has two opticns. Option A would hwe an initial fower cost but would require a significant expend ture for rebulding alter 4 years. Option B would require no reluilidirs expenditure, but its maintenance costs would be higher. Since the Option B machine is of initial higher qualify, it is expected to have a salvage value at the end of its useful ilfe. The following estimates were made of the cash flows. The compary's cost of capital is 6%. Cick here to view the factor table Compute the (1) net present value, (2) profitability index, and (3) internal rate of refurn for each option. (Hint To solve for interna) rate of return, experiment with alternative discount rates to arrive at a net present value of zero) 0f the net present velue is negathe, use elther a negotive sign precedirs the number e8 45 or parencheses eg (45). Round enswers for aresent volue and ilR to 0 decimal places, es. 125 and round profitability index to 2 decimal places eg. 125 . For calculetion purposes use 5 decimal places as displayed in the factor toble provided!)

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