Net Present Value and Competing Projects For discount factors use Exhibit 12B.1 and Exhibit 128.2. Splro Hospital is invertigating the possibility of inverting 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: 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. Requiredis Round present value calculations and youe nnal answers to the nearest dollar. 1. Assuming a discount rate of 12\%, compute the net present value of each plece of equipment. Puro equipment: Briggs equipment: Spiro Hospikal is investigating the possiblity of investing in new dialysis equipment. Two local manufacturers of this equipment are being considered as soure of the equipment. After-tax cash inflows for the two competing projects are as follows: Both projects require an inital investment of $560,000. In both cases, assume that the eqsipment has a life of 5 years with no salvage value. Required; Round present value caiculotions and your final anewers to the nearest dollar, 1. Assuming a discount rate of 12%, compute the net present value of each piece of equipment. 2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is aiso $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 128 discount rate. per year Exhibit 12B.1 Present Value of a Single Amount" Exhibit 12B.2 Present Value of an Arnuity*