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Pharoah 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 5% Click here to view the factor table. (a) 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 eg45 or parentheses eg (45). Round answers for present value and IRR to 0 decimal places, eg. 125 and round profitability index to 2 decimal places, eg. 12.50. For colculation purposes, use 5 decimal places as displayed in the factor table provided.) 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 ploces, eg. 125 and round profitability index to 2 decimal places, eg. 12.50. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) eTextbookand Media Attempts: 0 of 3 used (b) The parts of this question wust be completed in order. This part will be avatlable when you complete the part above

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