Current Attempt in Progress 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 is 7%. Option A Option B Initial cost $170,000 $263.000 Annual cash inflows $72,700 $82,000 Annual cash outflows $30,500 $26.900 Cost to rebuild (end of year 4) $51,800 $0 Salvage value $0 $7,900 Estimated useful life 7 years 7 years