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 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 7% Option B Option A $175,000 Initial cost $271,000 Annual cash inflows $72,100 $82,400 Annual cash outfiows $29.300 $25,700 $48,700 $0 Cost to rebuild (end of year 4) $0 $7.200 Salvage value Estimated useful life 7 years 7 years Compute the (1) net present value, (2) profitability index, and (3) interral 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 elther a negative sign preceding the number eg -45 or parentheses eg (45). Round answers for present value and IRR to O decimal places, eg, 125 and round profitability Index to 2 decimal places, eg. 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 $ 18508 %6 1.11 %% $ Option B 1.15 62.203