Mar Vista Molding Company is considering investing in new therrnokillian equipment. It has two options: Option A would have an initial lower cost but would require a significant expenditure for rebuilding after 3 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: Option A Option B Initial cost $53,000 $58,000 Annual cash inflows $30,000 $30,000 Annual cash outflows $15,000 $18,000 Cost to rebuild (end of year 3) $12,000 $ -0- Salvage value S -0- 510,000 Estimated useful life 6 years 6 years The company"s cost of capital is 8%. Instructions (a) Compute the (1) net present value, (2) profitability index, and (3) internal rate of return for each option. (b) Which option should be accepted?