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%. Option A Option B Initial cost $189,000 $285,000 Annual cash inflows $71,600 $82.500 Annual cash outflows $28,200 $26,700 Cost to rebuild (end of year 4) $50,100 $0 Salvage value $0 $8,100 Estimated useful life 7 years 7 years Click here to view the factor table.