Wildhorse 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%. Option A Option B Initial cost $167,000 $271.000 Annual cash inflows $71,700 $80.500 Annual cash outflows $31,500 $25.800 Cost to rebuild (end of year 4) $50,200 $0 Salvage value $8.300 Estimated useful life 7 years 7 years(12) Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 15% 1 96154 95238 94340 .93458 .92593 .91743 .90909 .90090 89286 86957 2 92456 90703 89000 87344 85734 .84168 82645 .81162 .79719 75614 3 .88900 86384 .83962 81630 79383 .77218 75132 .73119 .71178 .65752 4 85480 82270 79209 76290 73503 70843 .68301 .65873 .63552 57175 5 .82193 78353 74726 71299 68058 .64993 .62092 .59345 .56743 49718 6 79031 74622 70496 .66634 .63017 59627 .56447 .53464 .50663 43233 7 .75992 71068 66506 62275 .58349 .54703 51316 48166 .45235 .37594 73069 67684 62741 .58201 54027 50187 .46651 43393 40388 .32690 9 70259 .64461 59190 .54393 50025 46043 42410 .39092 .36061 .28426 10 .67556 .61391 55839 50835 46319 .42241 .38554 .35218 .32197 .24719 11 .64958 58468 52679 47509 42888 .38753 .35049 31728 .28748 .21494 12 62460 55684 49697 -44401 39711 .35554 .31863 28584 25668 18691 13 .60057 .53032 .46884 41496 36770 32618 .28966 .25751 .22917 .16253 14 57748 .50507 44230 .38782 34046 .29925 .26333 23199 .20462 .14133 15 .55526 48102 41727 .36245 31524 27454 .23939 .20900 18270 .12289Compute 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 O 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.) Net Present Value Profitability Index Internal Rate of Return Option A $ % Option B 9%