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For discount factor usa Exhibit 128.1 and Exhibit 12B.2 spiro Hospital is investigating the possibility of investing in navw dialysis aquipment. Two local manufacturers of
For discount factor usa Exhibit 128.1 and Exhibit 12B.2 spiro Hospital is investigating the possibility of investing in navw dialysis aquipment. Two local manufacturers of this equipment ara being considerad as sourcas of the equipmant. After-tax cash inflows for the two competing projacts are as follows Briggs Puro Equipment 320,000 280,000 240,000 160,000 120,000 $120,000 120,000 320,000 400,000 440,000 Both projects naquire an initial investment of $ 60,000. In both cases, assume that the equipment ha; a life of years with no salvage value. Round prezant value calculations and your final answars to the nearast dollar. 1. Assuming a discount rate of 12, compute the net present value of each piece of equipment. Puro equipment Briggs equipment: 2. Athird option has surfaced for equipment purchased from an out-of-state supplier. The cost i also S:560,000, but this equipment wil produce even cash flows over its 5-year life, what must the annual cash flow be forthis equipment to be selected over the other two? Assume 12% discount rate. Check My Work Previous Next Save and Exit Submit Assignment for Grading
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