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

answer correctly
answer correctly Net Prosent Value and Competing Projects For discount foctors use

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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