question 2: which option shold be accepted?

Problem 12-3 Brooks Clinic is considering investing in new heart-monitoring gumant. It has two options Option A weddave an ower cost but would rege a significant andre forbulding her years. Option would redire no rebuilding expenditure, but its maintenance costs would be higher Since the option machine of ligher quested to love at the end of the wings were made of the cash flows. The company's cost of capital Option A Option Initi cost $175,000 3271.000 172.100 320.300 Cost to rebuild (end of year) Salvage value Estimated useful Annual cash inflows $82.400 125.700 Annual cash outflows 340.700 30 10 37,200 7 years 7 years Click here to Compute the (1) net present value. (a) profitability index, and (3) Internal rate of return for each uption. To se for intereftum periment with matices to the ofero) (r the nearest value is negative either a negative son receding the numer 5 parentheses (453. Round answers for rental and IRR to deal 125 and round ability index to decimal plan. 12. S. For calculation purposes, we decimal faces as displayed in the factor table provided Net Present Value Profitability Index Internal Rate of Return Option A $ Optione WILARI