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 7% Initial cost Annual cash inflows Annual cash outflows Cost to rebuild (end of year 4) Salvage value Estimated useful life Option A $177,000 $72.000 $28,500 $51.000 SO 7 years Option B $268,000 $81,700 $25,600 SO $7.400 7 years 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 arrivata net present value of the present value is negotiv, se either a totesin preceding the number 45 of parentheseses MS Round answers for present ok and IRR to decimale 125 and round profitability Index to 3 decimal places 12 50. Por outron purposes se 5 decimal places as played in the factor table provided Net Pre Value Profitability Index Internal Rate of Return Option $ Con 114 110