Net Present Value and Competing Projects For discount factors use Exhibit 128.1 and Exhibit 128.2. Spiro Hospital is investigating the possibility of investing in new dialysis equipment, Two focal manufacturers of this equipment are being considered a sources of the equipment After-tax cash inflows for the two competing projects are as follows: Year Puro Equipment 1 $320,000 Briggs Equipment $120,000 120,000 320,000 2 200,000 240,000 2 160.000 400,000 440,000 120,000 Both projects require an initial investment of $560,000. In both cases, assume that equipment has a life of years with no salvage value Required: Round present value calculations and your final answers to the nearest dollar. 1. Assuming a discount rate of Bw.compute the net present value of each plece of equipment, Puro equipment: Briggs equipment: 2. A third option has surfaced for equipment purchased from an out-of-state supplies. The cost is also 6560,000, but this equipment will produce even cash flows over its syarite What must the annual cash flow be for this equipment to be selected over the other two? Assume a % discount rate, per year