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 local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash infiows for the two competing projects are as follows: Both projects require an initial investment of 3560,000 . In both cases, assume that the equipment has a life of 5 years with no salvage value. Requiredt 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 equlpment: x Briggs equipment: 2. A third option has surfoced for equipment purchased from an out-of-state supplien. The cost is also 5560,000 , but this equipment will produce even cath flows over its 5-year life. What must the annual cain flow be for this equipment to be selected over the other two? Assume a 12% discount rate. peryear 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 local manufacturers of this equipment are being considered as sources of the equipment. After-tax cash infiows for the two competing projects are as follows: Both projects require an initial investment of 3560,000 . In both cases, assume that the equipment has a life of 5 years with no salvage value. Requiredt 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 equlpment: x Briggs equipment: 2. A third option has surfoced for equipment purchased from an out-of-state supplien. The cost is also 5560,000 , but this equipment will produce even cath flows over its 5-year life. What must the annual cain flow be for this equipment to be selected over the other two? Assume a 12% discount rate. peryear