Calculate the Net Present Value, Probability Index, and Internal Rate of Return for Option A and Option B. Round answer to 0 place and round profitability index to 2 decimal places.

Question 2 of 2 - 135 : Crane 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 $181,000 $283,000 Annual cash inflows $73,000 $82,400 Annual cash outflows $30,200 $25,100 Cost to rebuild (end of year 4) $48,000 $0 Salvage value $0 $8,300 Estimated useful life 7 years 7 years Click here to view PV table. Q Search a myhip P