Muskogee
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:
Year
Puro
Equipment
Briggs
Equipment
1
$320,000
£120,000
2
280,000
120,000
3
240,000
320,000
4
160,000
400,000
5
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:
Download
Excel
spreadsheet
Round
present
value
calculations
and
your
final
answers
to
the
nearest
dollar.
1.
Assuming
a
discount
rate
of
12%,
compute
the
net
present
value
of
each
competing
project.
Puro
equipment:
g
289,530
Briggs
equipment:
§
374,453
Since
the
NPV
of
the
Briggs
equipment
is
~
than
that
of
the
Puro
equipment,
Briggs
should
~
chosen.
The
data
analytics
types
are
v.
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
12%
discount
rate.
S
per
year
