For discount factors use Exhibit 128,1 and Exhibit 12B.2. Spiro Hospital is investigating the possiblity of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equipment, After-tax cash inflows for the two competing projects are as follows: Both projects require an initial investment of $560,000. In both cases, assume that the equipment has a ife of 5 years with no solvage value. Aequired: Round present value calculations and your final answers to the nearest dollar, 1. Assuming a discount rate of 12%, compute the net present value of each piece of equipment. 2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also $560,000, but this equipment will preduce even cash Both projects require an initial investment of $560,000. In both cases, assume that the equipment has a life of 5 years with no salvage value. Required: Round present value caiculations and your final answers to the nearest dollar: 1. Assuming a discount rate of 12%, compute the net present value of each plece of equipment. Puro equipment: Briggs equipment: 2. A third option has surfeced for equipment purchased from an out-of-state supplier. The cost is also 5560,000 , but this equipment will produce even cash flows over its 5 -year life. What must the annual cash flow be for this equipment to be selected over the other two? Assume a 12\% discount rate. X per year Exhibit 12B.1 Present Value of a Single Amount Exhibit 12B.2 Present Va ae of an Arnuity