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:

Required:
Compute the net present value of each project, assuming a required rate of 12 percent.

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Year MRI Equipment Biopsy Equipment $200,000 100,000 150,000 100,000 50,000 50,000 50,000 100,000 200,000 237,500 4