Net Present Value and Competing Projects For discount factors use Exhibit 128.1 and Exhibit 128.2....
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Net Present Value and Competing Projects For discount factors use Exhibit 128.1 and Exhibit 128.2. Spiro Hospital is investigating the possiblity 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: 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 8%, compute the net present value of each piece of equipment. Puro equipment: $ Round present value calculations and your final answers to the nearest dollar. 1. Assuming a discount rate of B%, compute the net present value of each piece of equipment. Since the NPV of the Briggs equipment is than that of the Puro equipment, Briggs should chosen. The data analytics types are 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 8% discount rate. per year Exhibit 12B.1 Present Value of a Single Amount* Exhibit 12B.2 Present Value of an Annulty




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