Brooks 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 5% Initial cost Option A $166,000 $70,600 $31,700 $49,600 Option B $278,000 $81,000 $26,700 Annual cash inflows Annual cash outflows SO Cost to rebuild (end of year 4) Salvage value Estimated useful life SO $8,800 7 years 7 years Click here to view PV Cable Compute the (1) net present value, (2) profitability index, and (3) internal rate of return for each option. (Hint: To solve for internal rate of return, experiment with alternative discount rates to arrive at a net present value of zero) (If the net present value is negative, use elther a negative sign preceding the number eg -45 or parentheses es (45). Round answers for present value and IRR to 0 decimal places, eg. 125 and round profitability Index to 2 decimal places, eg 12.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net Present Value Profitability Index Internal Rate of Return Option A $ %6 Option B $ e Textbook and Media Save for later Attempts: 0 of 3 used Submit