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. Aftertax cash inflows for the two competing projects are as follows: 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 dlscount rate of 10%, compute the net present value of each piece of equipment. Puro equipment: Briggs equipment: 2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also 5560,000 , but this equipment will produce even cash flows over its 5 -year ilfe. What must the annual cash flow be for this equipment to be selected over the other two? Assume a 10% discount rate. per year Exhibit 128.1 Present Value of a Single Amount" Exhibit 12E.2 Fresent Vave of an Annuby