Cullumber 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 is 5%. Option A Option B Initial cost $189.000 $285.000 Annual cash inflows $71,600 $82.500 Annual cash outflows $28,200 $26.700 Cost to rebuild (end of year 4) $50,100 Salvage value $0 $8.100 Estimated useful life 7 years 7 years(12) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 96154 .95238 94340 .93458 92593 .91743 90909 90090 89286 86957 2 .92456 90703 89000 87344 .85734 84168 82645 81162 .79719 75614 3 88900 86384 83962 .81630 .79383 .77218 75132 .73119 .71178 65752 4 85480 82270 79209 76290 73503 .70843 68301 65873 63552 57175 5 .82193 78353 74726 .71299 68058 64993 62092 .59345 .56743 .49718 6 79031 74622 70496 .66634 63017 .59627 .56447 .53464 50663 .43233 7 .75992 71068 .66506 .62275 58349 54703 51316 48166 .45235 37594 8 73069 67684 62741 .58201 54027 50187 46651 .43393 40388 32690 9 .70259 .64461 59190 54393 50025 46043 .42410 39092 36061 .28426 10 .67556 .61391 .55839 50835 46319 .42241 .38554 .35218 .32197 .24719 11 64958 58468 52679 .47509 .42888 .38753 35049 31728 .28748 .21494 12 62460 .55684 .49697 .44401 39711 .35554 .31863 .28584 25668 18691 13 60057 53032 46884 41496 36770 .32618 28966 25751 .22917 .16253 14 .57748 .50507 .44230 .38782 .34046 .29925 26333 23199 .20462 14133 15 55526 48102 41727 36245 31524 27454 .23939 .20900 18270 12289Compute 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 eg (45). Round answers for present value and IRR to 0 decimal places, e.g. 125 and round profitability index to 2 decimal places, e.g. 12.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Net Present Value Profitability Index Internal Rate of Return Option A 20912 1.11 % Option B 43637 1.23 %