I Your answer is incorrect. Compute the (1) net present value, (2) protability 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.) (lfthe 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 lRR to 0 decimal places, eg. 125 and round protability 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 Protability Index Internal Rate of Return Options 33 E % Ivanhoe 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 signicant 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 ows. The company's cost of capital is 7%. Option A Option B Initial cost $177,000 $268,000 Annual cash inows $72,000 $81,700 Annual cash outows $28,500 $25,600 Cost to rebuild (end of year 4) $51,000 $0 Salvage value $0 $7,400 Estimated useful life 7 years 7 years Click here to view PV table