CALCULATOR FULL SCREEN PRINTER VERSION MK NEXT Problem 24- 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 er 4 years. Option would require no rebuilding expenditure, but its maintenance costs would be higher Since the Option machine is of initial higher quality. It is expected to have a salvage value at the end of its use . The following estimates were made of the cash flows. The company's cost of capital is 6% Option A $186,000 $72,200 $28,000 $51,000 Option $277,000 $82,700 $26.800 Annual cash inflows Annual cash outflows Cost to rebuild (end of year 4) Salvage value Estimated useful life 10 58,600 7 years 7 years Click here to view PV table Compute the (1) net present value (2) profitabiaty Index, and (3) internal rate of return for each option. Cat to solve for internal rate of retum, experiment with strative discount rates to arrive at a not present value of zero) (If the net present value is negative, use either a negative sin preceding the number og -5 or parentheses (45). Round answers for present value and IRR to decimal places, 125 and round profitably index to 2 decimal places, eg. 10.50. 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 s Option