Net Present Value and Competing Projects For discount factors use Exhibit 123.1 and Exhibit 128.2. Spiro Hospital is investigating the possibility 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: Year Pure Equipment Briggs Equipment 1 $320,000 280,000 2 $120,000 120,000 320,000 400,000 3 240,000 4 160,000 5 120,000 440,000 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 12%, compute the net present value of each piece of equipment. Puro equipment: Briggs 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 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 per year O More O O KESED LEO DE MOSSOS ECOSO 7 SE SAD toto WOD VIII Exhibit 128.1 Presentative of Single Amount 19 24 4 10 12 TEN 10 TV 1 0010 0.00 0.07067 096154 0.95738 244 045 0.9259707174 890909054 19 06207 0.54746 OB 0.0000 070123 200611 0.000 0.0006 0.00 0.000 0.7 168 245 079119 HOME ILI 0.66044 0.00 0.0172 1 047059 QOZOSTO 31667923 0.77216 075171 0.71 0.41 0.80.1200 MM 0.25 0.88540 550 2270 09209 3.690 70547.68301 0.67552 325 0.55220 0.51579 04277564090005011 55147 0.0 219 075 0.025 120 1.200 0.56X1637933011 UMO 600W 011 07412070406 0.6 043017 S 01440) 0.45599 410701 207 ) * SH 414 684 0.24 0.56201 0.4627 0.50162 0.46851008 0.5056 060040229 01329 091434 37 0025 0.4 0.5819 0438300280.46043 042410 30751 0.025 0.125 0.19781 000 10000530 11 6611 OSLO 0.46119 0.424 554 0.32197 0.19 0.100234 11 12 06 720 6.401.65209 0.000 0.00 0.00 0.16 0.1954 1 12 0 0 0.0 AW 64401015551 01 02 0112160687 69 12 0 !!) 57912 6 46.20 0.20 0.20 000 14 NO.740112 7748 asosor 6400000 15001 013520DW DOMUS ce 16 OS Salt 0.2510 OSH 205133 041630 ans 16 r027 0.0 MM 0 10700060210 00022 18.08.20.415570 956 02025 0.00 0.00 0.00 0.00 cm 30.11611 00 1 05053 0.37051 2310194 000 COS200313 0146 26 00S 04530312 250 0.16 0.1747 106 107 72 20.9.1992 OSS 11040 BOOMSOORDON 00053 21 A0338030 029416016100135 00025 0.000000 04 021 0.27751.225.71 0.18700150180123 000 000 21544 0.0.0.0.375 0.70 1701 17 2016071008 0.17032 m. 00:28 0227200 34 078757 U2 09 201007 4081975 1970 0 12400.10163001000 0950 000 000 NO 26 0720.000 0.000201230101 017720 0152016221910 0010 27 07046 SH 030 0.20 0.10093 1252001600720020 28 2017030250 0.105610100 01100000000000147 0000 000 29 X 0.56111 0000 0.00 0.4056 010713 000 001 002 nisi 06.000.000 300.412 0.20 0.4110920211117411 0.13 0.0 0.0 0.057210601036046001248 TOLD STO 500 000 000 LEO SEO LOCO A TODOS LOS SI CORE 4 MOD DEN RIGOLEREEDSRICO CHE SONO SVO DM 2001 2000 to Com O ZISTON NOR MONO "A Exhibit 120.2 Present Value of an Anny O NO 7 94 104 12 144 10 209 239 0.00010098019 2018 28 9 0975787000 ? 197040 1156 117 11.2000228 1.1.2005 40571.121.460001008 22.94009 2.683682 2.722.72123 2.1 282432 2570 2511222.01.2016 11611 7.90197 1.307.710 14 1ZE 331203 3:20121008 2007 2006 18574170 45183 184 1.21236 4.100201 walor 23 042 360 6599548540145 34 204 0.2425525 AM 10 a 32142112212 11 $728.1.2018 2017 2028 2029 Mocomo 2011102021 , , 74516% 7.254 7.19 672074 64212017259710 576 5.5348253546764 4339173871292470 96602 1024 761 743531 7.10.2010 26246599525 5.250 5225 04542 0 11.2. 47.886 TAG 16.051000 5170 02 32706 65 150 10 m2 1530301100000070838 6700 1649 622 12 11.25508 1659514395400 1507 MS 700 750 17822 dette 13 12:14 10699345.0357 SUN ANO 21001 235 on 013238 14 11.000 1210626 11.2010 2011 2009 4240465266241 DN 4 LO 2016 15 1.037 1.11.30 1031 10701 257 101 16 14.71871012.56110 11.2010 2377 10.10 44665 movie 31779710002472412 17 12 2017 13.141212.1656711.2007 1007700 17 Scare same 18 16.807142920013.7515112.400 TL 2010.05.20141721 samme 300 19 172260115.67810121342016112035609011517 SEMESTER150 OR 1 2018.01.310140710712.900331240211.00210 SM 173556301 Mom 720 21 12012112211510100120021.00 AM 22 10.03617A8055.415121.563001704156 11.0614 10.2002 ASC con 0 0 132 23 204124220 16431568413.4885712.08 11.2/210 10 28.12.2012 94531 24 212019180369512404117412.50 11.4001 102 103 104 1027 25 om 10.37617 15.622012/13 11:453122598770422 26 2.7952020127047598277 16750110001127060056 411 4040 27 35 2070116.250 14643012053111106100589.2372 7455 456 454 28 2016122812 16.11.2016 12.11.05100101101300 120 am >> 306572841310169871015007327051019280281281472 10 30 277122.96.2920115.7251.42.0004 11:25 10274598 YB177016 or W. HAN US CO SESSO MOENIE
