anyone please help me to solve the q!

P12.3 (LO 2, 3, 4), AN Service Frankfurt 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 main- tenance costs would be higher. Since the Option B machine is of initial higher quality, it is expected to have a residual value at the end of its useful life. The following estimates were made of the cash flows. The company's cost of capital is 8%. Option A Option B Initial cost 160,000 227,000 Annual cash inflows 71,000 80,000 Annual cash outflows 30,000 31,000 Cost to rebuild (end of year 4) 50,000 0 Residual value 0 8,000 Estimated useful life 7 years 7 years Instructions 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.) b. Which option should be accepted