1. 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		Briggs Equipment
   1		$320,000		$120,000
   2		280,000		120,000
   3		240,000		320,000
   4		160,000		400,000
   5		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 value calculations and your final answers to the nearest dollar.

   1. Assuming a discount rate of 10%, compute the net present value of each piece of equipment.

   Puro equipment:	$fill in the blank 1
   Briggs equipment:	$fill in the blank 2

   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 10% discount rate. $fill in the blank 3 per year