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 5 years with no expected salvage value. The net cash inflows associated with the two independent projects are as follows: Year X-ray equipment Biopsy equipment $375,000 $75,000 150,000 75,000 300,000 525,000 150,000 600,000 75,000 675,000 a. Compute the payback period for each project. (20 marks) b. Assume that the manager of the hospital accepts only projects with a payback of 3 years or less. Offer some reasons why this may be a rational strategy, even though the calculated net present values X-ray equipment and Biopsy equipment are $55,821 and $514,766 respectively. (10 marks)