Medical center is considering purchasing two new types of equipment for their medical centers: new exercise and rehabilitation equipment. Each purchase will necessitate an initial investment of 850,000. Both proposed types of equipment have an expected life of five years, no projected salvage value, and provide net cash flows as follows:

Year	Exercise	Rehabilitation
1	$300,000	$200,000
2	$300,000	$200,000
3	$300,000	$200,000
4	$200,000	$300,000
5	$100,000	$375,000

Complete the following (ignore income taxes) in Excel.

1. Compute the Net Present Value (NPV) of each proposal, assuming a required rate of return of 12 percent.

2. Compute the Internal Rate of Return (IRR) for each proposal.

3. Compute the Payback Period (undiscounted) of each proposal.