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 is7%.

Option A Option B

Initial Cost 175000 271000

Annual Cash inflows 72100 82400

Annual cash outflows 29300 25700

cost to rebuild (end of year 4) 48700 0

Salvage Value 0 7200

Estimated useful life 7 years 7 years

I need help with computing the net present value for both options A & B

I also need to determine profitability index, and the internal rate of return on each option.

I cant understand the table I am looking at with percentages and number of payments and each answer I ahve come up with has been wrong