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Brooks Clinic is considering investingin new heart-monitoring equipment. It has two options. Option A would have an initial lower cost but would require a significant

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Brooks Clinic is considering investingin new heart-monitoring equipment. It has two options. Option A would have an initial lower cost but would require a significant expenditure for rebulding after 4 years. Option B would require no rebullding eqpenditure, but its maintenance costs would be higher. Since the Option B machine is of initial higher quality. it is expected to havea salvage value at the end of its useful life. The following estimates were made of the cash flows. The companys cost of capital is 7% Clickhere to view the factor table 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 preient value is negothe, use either a negative sign preceding the number es -45 or porentheses eg (45). Round answers for present velue and IRR to 0 decimol ploces es. 125 and round profitability index to 2 decimal places, es. 12.50. For calculation purposes, use 5 decimal ploces as displayed in the factor table provided. Attempts: 0 of 1 used Usine multiple atiempts will impoct your score 100 score reduction after attempt 1 Brooks Clinic is considering investingin new heart-monitoring equipment. It has two options. Option A would have an initial lower cost but would require a significant expenditure for rebulding after 4 years. Option B would require no rebullding eqpenditure, but its maintenance costs would be higher. Since the Option B machine is of initial higher quality. it is expected to havea salvage value at the end of its useful life. The following estimates were made of the cash flows. The companys cost of capital is 7% Clickhere to view the factor table 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 preient value is negothe, use either a negative sign preceding the number es -45 or porentheses eg (45). Round answers for present velue and IRR to 0 decimol ploces es. 125 and round profitability index to 2 decimal places, es. 12.50. For calculation purposes, use 5 decimal ploces as displayed in the factor table provided. Attempts: 0 of 1 used Usine multiple atiempts will impoct your score 100 score reduction after attempt 1

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