Brooks Clinic is considering investing in new heartmonitoring equipment It has two options. Option A would have an initial lower cost but would require a signifrca nt 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 ca sh flows. The corn pany's cost of capital is 3'96. Option A Option B Initial cost $1?7,000 $268,000 Annual cash inows $30,000 $81,700 Annual cash outows $28,500 $25,600 Cost to re build {end ofyear 4} $5 1,000 $0 Salvage value $0 $7,400 Estimated useful life 7 years 7' years Click here to Viewthe factor table.