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Coconado Clinic is considering investing in newheart-monitoring equipment it has two eptions Option A would hme an initial lower cost but would recuire a significant

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Coconado Clinic is considering investing in newheart-monitoring equipment it has two eptions Option A would hme an initial lower cost but would recuire a significant expenditure for rebuilding after 4 years. Option B would require no rebuilding expend ture, but its maintenance costs would be highef. Since the Option B machine is of initial higher quality. It is expected to hype a salvage value at the end of its useful life. The following estimates were made of the cash flows. The compary's cost of capital is 5.2 . 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 present value is negative, use either a negative sign preceding the number eg -45 or parentheses es (45). Round answers for present value and IRR to 0 decimal places, e.s. 125 and round profitability index to 2 decimal places, e.8. 12.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

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