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 inflows for the two competing projects are as follows: Year Puro Equipment 1 $320,000 Briggs Equipment $120,000 2 280,000 120,000 3 240,000 320,000 4 5 160,000 120,000 400,000 440,000 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. Round present value calculations and your final answers to the nearest dollar. 1. Assuming a discount rate of 14%, compute the net present value of each piece of equipment. Puro equipment: $ Briggs equipment: X Since the NPV of the Briggs equipment is greater predictive and prescriptive than that of the Puro equipment, Briggs should be chosen. The data analytics types are 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 5-year life. What must the annual cash flow be for this equipment to be selected over the other two? Assume a 14% discount rate. X per year