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Widhorse 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

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Widhorse 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 rebullding after 4 years, Option B would require no rebuliding expenciture, 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 iffe. The following estimates were made of the cash flows, The company's cost of capital is 6%. Click hete to view the factor table. (a) Compute the (2) net present value, (2) profitability indec, and (3) internal rate of return for each cotion, (Hink to solve for iaternal Compute the (1) net present value, (2) proftability index, and (3) internal rate of return for each option (Hint: To solve for internal rate of retum, experiment with altemative discount rates to arrive at a net present value of zero) (if the net present value if negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answers for present volue and IRR to 0 decimal places, es. 125 and round profitability index to 2 decimal places, e- 12.50. For calculation purposes, use 5 decimal places as disployed in the factor table provided.) (b) The parts dit ths question pust be coinpleted in order. This part will be avalible when you camplete the sart above

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