For discount factors use Exhibit 12B.1 and Exhibit 12B.2. 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 life of 5 years with no salvage value. Required: Round present value calculations and your final answers to the nearest dollar. 1. Assuming a discount rate of 8%, compute the net present value of each piece of equipment. Exhibit 12B.1 Present Value of a Single Amount* rn=/(1+1) Exhibit 12B.2 Present Value of an Annuity* 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 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 8% discount rate. $X per year