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Current Attempt in Progress Oriole Clinic is considering investing in new heart-monitoring equipment, It has two options. Option A would have an initial lower cost

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Current Attempt in Progress Oriole 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 rebuliding 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%. Clickhere to view Py 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 present volue is negative, use either a negative sign preceding the number eg45 or parentheses eg (45). Round answers for present value and IRR to 0 decimal places, eg. 125 and round profitablity index to 2 decimal places, es. 12.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) TABLE 1 Puture Value of 1 TAELE 2 Future Value of an Anabity of 1 Pretent Value of 1 Prosent Valise of an Annaiewar

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