Problem 24-1A Brooks 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 would require ne rebuilding expenditure, but its maintenance costs would be higher Since the Opsion machine is of higher quality, it is expected to have a salvage value at the end of its s ite. The following estimates were made of the cash flows. The company's cost of capital is 5% Option A Option Initial cost $179,000 1283.000 Annual cash innows $71,700 $81,100 Annual cash outflows $30,200 $25.000 Cost to rebuild (end of year 4) $50,700 50 Salvape value $0 $7.900 Estimated useful le 7 years 7 years Click here to view Pv table Your answer is partially correct. Try again. experiment with alternative di r es to arrive at vent value the int value and IRR to O decimal places g. 125 and round pretty index to 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 net present value is negative, use either a negative sin preceding the number eg -45 or parentheses (45). Hound answe 2 decimal places, e.. 10.50. 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 1 19423.36 1.09 Option 31371381 111