A hospital is considering the possibility of two investments:

A hospital is considering the possibility of two investments: to. new xray equipment {XRAY} b. new equipment for biopsies [BIOPSIES] Each project requires an initial investment of S 750,000 The life expectancy for each project is 5 years Management determined the cash flows for each project: YEAR XRAY BIOPSY 0 S {750,000.00} 5 {75000000} 1 375,000.00 75,000.00 2 150,000.00 750,000.00 3 300,000.00 525,000.00 4 150,000.00 600,000.00 5 75,000.00 675,000.00 REQUIRED 1. Determine the present value for each project taking into account a discount rate of 12% 2. Determine the payback period for each project 3. What project would you recommend and why