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 sign preceding the number eg -45 or parentheses eg (45). Round answers for present value and IRR to 0 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.)

Brooks Clinic ls considering investlng in new heart-monitonng equipment. It has two options. Option A would have an inltlal lower cost but would require a signicant expenditure for rebuilding after 4 years. Option B would require no rebulldlng expenditure, out lts maintenance costs would be higher. Since the Option B machlne is of initial higher quality, it is expected to have a mlvage value at the end of its useful llfe. The following estimates were made of the cash flows. The company's cost of capital is 6%. Option A Inltlal cost $181,000 Annual cash inows $73,000 Annual cash outows $30,200 Cost to rebuild (end of year 4] $48,000 Salvage value $0 Estimated useful life 7 years CIICK here to View W table. V (i) Compute the (1) net present value, (2) protabllity Index, and (3) internal rate of return for each optlon. (Hint: To solve For internal rate of return, experiment with alternatlve 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 vaiue ano' IRR to 0 decimal places, e.g. 125 and round protability index to 2 decimal places, e.g. 12.50. For calculation purposes, use 5 decimal places as dkplayed in the factor table provided.) Option 3 $233,000 $32,400 $25,100 $0 $8,300 7 years Net Present Value Protahlllty Index Optlon A $| | l Optlon a $l l | Internal Rate of Return In