Could you explain every step for me please

ervice P12.3A (LO 2, 3, 4), AN Brooks Clinic is considering investing in new heart-monitoring 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 salvage value at the end of its useful life. The following estimates were made of the cash flows. equipn The company's cost of capital is 8%. Option A Option B Initial cost S160,000 $71,000 $30,000 $227,000 $80,000 Annual cash inflows Annual cash outflows S31,000 Cost to rebuild (end of year 4) Salvage value Estimated useful life $50,000 $0 $O $8,000 7 years 7 years Instructions a. Compute the ( 1 ) net present value, (2) profitability index, and (3) internal rate of return for each op- tion. (Hin: To solve for internal rate of return, experiment with alternative discount rates to arrive at a net present value of zero.)