Can you elaborate further more? And which is the best option?

P5.32A (L0 2, 3, 4.) m Berens River Clinic is considering investing in new heart monitoring equipment. It has two options: Option A would have a lower initial cost but would require a signicant expenditure for rebuilding after four years. Option B would require no rebuilding expenditure, but its maintenance costs would be higher. Since the Option B machine is of a higher initial quality, the clinic expects it to have a salvage value at the end of its useful life. The clinic made the following estimates: Option A Option B Initial cost $160,000 $227,000 Annual cash inows 70,000 80,000 Annual cash outows 30,000 26,000 Cost to rebuild (end of year 4) 50,000 0 Salvage value 0 8,000 Estimated useful life 7 years 7 years The clinic's cost of capital is 8%. Instructions :1. Calculate the (1) net present value, (2) protability index, and (3) internal rate of return for each option. (Hint: To solve for the internal rate of return, experiment with alternative discount rates to arrive at a net present value of zero.) a. (1) NPVA: $11,503 (3) IRR B: 15% b. Determine which option the clinic should accept