Net Present Value and Competing Projects For dscount factors use Exhibit 128. 1 and Exhibit 128.2. Spiro Hospital is investigating the possiblity of lavesting in new diaiysis equipment. Two local manufocturers of this equipment are being cansidered as sources of the equigment. Atertax cash inflows for the two competing projects are as followst Both projects require an initial investment of $560,000. In both coses, assume that the equipment has a life of 5 years with no salvege value. Required: ound present value calculabons and your final answers to the nearest dollar 1. Assuming a discount rate of 10%, compute the net present value of each piect of equipenent. Puro equipment: Briggs equipment 2. A third option has surfaced for equipment purchased from an out-of-state supplier. The cost is also 1560,000 , but this equipment will produce even cash fiows over its 5 -year life. What must the annwal cash flow be for this equipment to be selected over the other two? Assume a tow discount rate: per year