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helo me pleasere Net Present Value and Competing Projects For diseount factors use Exhibit 128,1 and Exhibit 12B.2: Spiro Hospitai is investigating the possibility of
helo me pleasere
Net Present Value and Competing Projects For diseount factors use Exhibit 128,1 and Exhibit 12B.2: Spiro Hospitai is investigating the possibility of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as sources of the equlpment. After-tax cash infows for the two competing projects are as follows: Doth projects require an initial investment of $560,000. In both cases, assume thet the equipment has a life of 5 years with no salvage value. Required: Round present value calculatons 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 cast is also 5560,000 , but this equipment will produce even cash fiows over its 5 -year life. What must the annual cash fiow be for this equipment to be selected over the other two? Assume a 12\% discount rate. per year Step by Step Solution
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