Net Present Value and Competing Projects For discount factors use Exhibit 14B-1 and Exhibit 14B-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 inflows for the two competing projects are as follows: Briggs Equipment Year Puro Equipment $120,000 $320,000 280,000 120,000 320,000 240,000 400,000 160,000 120,000 440,000 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 discount 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 $560,000, but this equipment will produce even cash flows over its 5- year life. What must the annual cash flow be for this equipment to be selected over the other two? Assume a 10% discount rate. per year