compute net present value, profitability index. and rate of return for each option.

Brooks Clinic is considering investing in new heart-monitoring equipment. It has two options. Option A would have an initial low cost but would require a significant expenditure for rebuilding after 4 years. Option B would require no rebuilding expenditure, maintenance costs would be higher. Since the Option B machine is of initial higher quality, it is expected to have a salvage value end of its useful life. The following estimates were made of the cash flows. The company's cost of capital is 6%. Click here to view PV table. ute the (1) net present value, (2) profitability index, and (3) internal rate of return for each option. (Hint: To solve f f return, experiment with alternative discount rates to arrive at a net present value of zero.) (If the net present valu ve, use either a negative sign preceding the number eg - 45 or parentheses eg (45). Round answers for present value and IR al places, e.g. 125 and round profitability index to 2 decimal places, e.g. 12.50. For calculation purposes, use 5 decimal pla red in the factor table provided.) xtbook and Media