NTER BACK Problem 12-3A (Part Level Submission) (Video) Brooks Clinic is considering investing i years. Option 8 would require no rebuilding expenditure, but its maintenance costs would be higher. Since the Option 8 machine is of initial higher quality, it is expected to have a salvage value at the end of its useful ife. The following estimates were made of the cash hows. Thecy'scost of capita n 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 is 7% Option A Option B 175,000 $271,000 $72,100 $82,400 $29,300 $25,700 $0 $0 $7,200 7 years 7 yeans Initial cost Annual cash inflows Annual cash outflows Cost to rebuild (end of year 4) $48,200 Salvage value Estimated useful life Y (a) 5 Compute the (1) net present value, (2) profitability index, and (3) internal rate of at a net present value of zero.) r the net present valuve is negative, use either a negative sign preceding the number eg -45 value and IRR to 0 decimal places, e.g. 125 and round table provided.) return for each option. (Hint: To soive for internal rate of return, experiment with alternative discount rates to arive profitability index to 2 decimal places,e.g. 12.50. For calculation purposes, use S decimal places as displayed in the factor Net Present Value Profitability Index Internal Rate of Return Option A Option 8 Click if you would like to Show Work for this question: O Show Wr By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor