Net Present value and Competing Projects For discount factors use Exhibit 128.1 and Exhibit 121.2. 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 innows for the two competing projects are as follows: Year Puro Equipment $320,000 Briggs Equipment $120,000 1 2 280,000 120,000 240,000 160,000 320,000 400,000 440,000 120,000 Both projects require an initial investment of $580,000. In both cases, assume that the equipment has a life of years with no salvage value Required: Round present value calculations and your final mowers to the nearest dollar 1. Assuming a discount rate of 10%, compute the net present value of each piece of equipment Puro equipment: I 326,422.X Briggs equipment: 435,095. X 2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is alto $540,000, but this equipment will produce even cash Now we S-year life. What must the annual cash flow be for this equipment to be selected over the other two? Assume a 10% discount rate 262,502.X per year