Net Present Value and Competing Projects For discount factors use Exhibit 120.1 and Exhibit 120.2. 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. Alter-tax cash Inflows for the two competing projects are as follows: Year Puro Equipment $320,000 Briggs Equipment $120,000 1 2 280,000 120,000 320,000 3 240,000 400,000 160,000 120,000 440,000 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 valve 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 Pure equiment 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 5year life. What must the annual cash now be for this equipment to be selected over the other two? Assume a 12discount rate per year