Sheridan 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 6%. Click here to view the factor table. 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 0 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.) eTextbook and Media Which option should be accepted? should be accepted. TABLE 3 Present Value of 1 \begin{tabular}{cccccccccccc} \hline(n) Periods & \multicolumn{1}{c}{4%} & 5% & 6% & & 7% & 8% & 9% & 10% & 11% & 12% \\ \hline 1 & & .96154 & .95238 & .94340 & 0.93458 & .92593 & .91743 & .90909 & .90090 & .89286 & .86957 \\ 2 & .92456 & .90703 & .89000 & 0.87344 & .85734 & .84168 & .82645 & .81162 & .79719 & .75614 \\ 3 & .88900 & .86384 & .83962 & 0.81630 & .79383 & .77218 & .75132 & .73119 & .71178 & .65752 \\ 4 & .85480 & .82270 & .79209 & 0.76290 & .73503 & .70843 & .68301 & .65873 & .63552 & .57175 \\ 5 & .82193 & .78353 & .74726 & 0.71299 & .68058 & .64993 & .62092 & .59345 & .56743 & .49718 \\ 6 & .79031 & .74622 & .70496 & 0.66634 & .63017 & .59627 & .56447 & .53464 & .50663 & .43233 \\ 7 & .75992 & .71068 & .66506 & 0.62275 & .58349 & .54703 & .51316 & .48166 & .45235 & .37594 \\ 8 & .73069 & .67684 & .62741 & 0.58201 & .54027 & .50187 & .46651 & .43393 & .40388 & .32690 \\ 9 & .70259 & .64461 & .59190 & 0.54393 & .50025 & .46043 & .42410 & .39092 & .36061 & .28426 \\ 10 & .67556 & .61391 & .55839 & 0.50835 & .46319 & .42241 & .38554 & .35218 & .32197 & .24719 \\ 11 & .64958 & .58468 & .52679 & 0.47509 & .42888 & .38753 & .35049 & .31728 & .28748 & .21494 \\ 12 & .62460 & .55684 & .49697 & 0.44401 & .39711 & .35554 & .31863 & .28584 & .25668 & .18691 \\ 13 & .60057 & .53032 & .46884 & 0.41496 & .36770 & .32618 & .28966 & .25751 & .22917 & .16253 \\ 14 & .57748 & .50507 & .44230 & 0.38782 & .34046 & .29925 & .26333 & .23199 & .20462 & .14133 \\ 15 & .55526 & .48102 & .41727 & 0.36245 & .31524 & .27454 & .23939 & .20900 & .18270 & .12289 \\ 16 & .53391 & .45811 & .39365 & 0.33873 & .29189 & .25187 & .21763 & .18829 & .16312 & .10687 \\ 17 & .51337 & .43630 & .37136 & 0.31657 & .27027 & .23107 & .19785 & .16963 & .14564 & .09293 \\ 18 & .49363 & .41552 & .35034 & 0.29586 & .25025 & .21199 & .17986 & .15282 & .13004 & .08081 \\ 19 & .47464 & .39573 & .33051 & 0.27615 & \end{tabular}