please post full answers only 12.4

Question 4 of 9 -/4 = 1 View Policies Current Attempt in Progress 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 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 5%. Option A Option B Initial cost $182.000 $283,000 Annual cash inflows $72,800 $81.700 Annual cash outflows $30.600 $26,500 Cost to rebuild (end of year 4) $51,300 $0 Salvage value $0 $8,600 Estimated useful life 7 years 7 years Question 4 of 9 -/4 E : Click here to view the factor table, (a) 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 value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45) Round answers for present value and IRR to O decimal places, e.g. 125 and round profitability 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 Profitability Index Internal Rate of Return. Option A Option B $ $