Net Present Value and Compoting Projects For discount factors use Exhibit 128, I and Exhibit 12B. 2. Spiro Hospital is imvestigating 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 infliows for the two competing projects are as foliows: Both projects require an initial investment of $560,000. In both cases, assume that the equipment has a life of 5 years wath no salvage value. Required: Round present value caiculations and your final answers to the nearest dollar. 1. Assuming a discount rate of 9%, compute the net present value of each piece of equipment. Puro equipment: Briggs equipment: Both projects require an initial investment of 5560,000 . In both cases, assume that the equiprnent has a life af 5 years with he sabyage value Required: Round present value calculations and your final answers to the nearest dollar: 1. Assuming a discount rate of 9%6, complute 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 aroduce even cash flows over its 5 -year life. What must the annual cash flow be far this equipment to be selected over the other two? Asinume a gos discaurt rote. x per year