NPV

A clinic is considering the possibility of two new purchases: new MRI equipment and new biopsy equipment. Each project requires an investment of $416,800. 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	$224,000	$53,000
2	93,000	51,000
3	174,000	90,000
4	103,000	192,000
5	41,000	290,000

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

Required:

Compute the net present value of each project, assuming a required rate of 8 percent. If the NPV is negative, enter your answer as a negative value.

	NPV
MRI equipment	$_____________
Biopsy equipment	$_____________