NPV

A clinic is considering the possibility of two new purchases: new MRI equipment and new biopsy equipment. Each project requires an investment of $$425,000.$ The expected life for each is five years with no expected salvage value. The net cash inflows associated with the two independent projects are as follows:

Year MRI Equipment Biopsy Equipment

$1$ $$200,000$ $ $50,000$

$2100,00050,000$

$3150,000100,000$

$4100,000200,000$

$550,000237,500$

The present value tables provided in Exhibit $19$B$\mathrm{.}1$ and Exhibit $19$B$\mathrm{.}2$ must be used to solve the following problems.

Required:

Compute the net present value of each project, assuming a required rate of $12$ percent. Round intermediate calculations to the nearest dollar. If the NPV is negative, enter your answer as a negative value.

NPV

MRI equipment $fill in the blank $1$

Biopsy equipment $fill in the blank $2$