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II. Capital Investments with Independent Projects 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: n17 Year 1 2 3 X-Ray Equipment $375,000 150,000 300,000 150,000 75,000 Biopsy Equipment $ 75,000 75,000 525,000 600,000 675,000 Required: 1. Compute the net present value of each project, assuming a required rate of 12%. 2. Compute the payback period for each project. Assume that the manager of the hospital accepts only projects with a payback period of 3 years or less. Offer some reasons why this may be a rational strategy, even though the NPV computed in Requirement I may indicate otherwise