Question: answer correctly Net Prosent Value and Competing Projects For discount foctors use Exhibik 12B,1 and Exhibit 128,2 . Spiro Hospital is investigating the possibility of
Net Prosent Value and Competing Projects For discount foctors use Exhibik 12B,1 and Exhibit 128,2 . Spiro Hospital is investigating the possibility of investing in new dialysis equipmenti. 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 follews: Both projects require an intial incestment of 5560,000 . In both cases, assume that the equipment has a lile of 5 years with no saivage value. Requiredt Raund present yalue calculations and your final answers to the nearest doliae. 1. Assuming a discount rate of 10%, compute the net present value of each plece of equipment. Puro equipment: Brigos equipmenti 2. A third option hes surfaced for equpenent purchased from an out-of-atate wipplien, The cost is also 5560,000 , but this equipanent wit produce ever cash fiaws ever its S-year life. What must the annual cash fiow be for this equipment to be selected over the other two? Assume a 10% discount rate. per year
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