CALCULATOR FULL SCREEN PRINIER VERSION HACK NEX Problem 16-3 (Part Level Submission) Cheyenne 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%. Initial cost Annual cash inflows Annual cash outflows Cost to rebuild (end of year 4) Salvage value Estimated useful life Option Options $186,000 $277,000 $72,200 $82,700 $28,000 $26,800 $51.000 $0 30 58,600 7 years 7 years Gick here to view Pytable 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 sin preceding the number eg. 45 or parentheses (45). Round answers for present value and IRR to o decimal places, .0. 125 and round profitability index to 2 decimal places .0. 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 5 95 Option 5 1000W