A hospital is considering the possibility of two new purchases: new X-ray equipment and new biopsy equipment.

Question:

A hospital is considering the possibility of two new purchases: new X-ray equipment and new biopsy equipment. Each project would require an investment of $750,000. The expected life for each is five years with no expected . The net cash inflows associated with the two independent projects are as follows:

Required:
Compute the net present value of each project, assuming a required rate of 12percent.

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