Problem 6 3 Grouper 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 rebualding after 4 years. Option B would require no rebuilding expenditure, but its maint gher. Since the Option B machine is of initial higher quality, it is expected to have a salvage value ot 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 $193,000 $288,000 Annual cash inflows $72,700 $81,800 Accual cash outflows $28.400 $25,400 Cost to rebuid (end of year 4) $51,500 Salvage value $7,000 Estimated useful lide 7 years years Click here to vicw PV table Compute the (1) net present value, (2) profitability index, and (3) internal rate of return for each option. (Hint To solve for intemal rate of return, experiment with alternative discount rates to arrive at a net present value of zero.) (If the net present value is negative, se either a negative sign preceding the eumber e.a. 45 ora decimal places, e-g. 125 and round profitability index to 2 decimal places, e-g 12.50. For calculation purposes, tese 5 decimal places as displayed in t resent value and 1RR to o factor table provided.) Net Present Value Profitability Index Internal Rate of Return Option A Option B