For discount factors use exhibit 12b.1 and exhibit 12b.2. spiro 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: round present value calculations 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: $ 345,760 briggs equipment: $ 467,320
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 9% discount rate. $ 264,166 per year feedback

Do savings and loan associations offer checking accounts?

What is the difference between a public and a private corporation?

Exercise 18-15 sheffield appliance center is an experienced home appliance dealer. sheffield appliance center also offers a number of services for the home appliances that it sells. assume that sheffield appliance center sells ovens on a standalone basis. sheffield appliance center also sells installation services and maintenance services for ovens. however, sheffield appliance center does not offer installation or maintenance services to customers who buy ovens from other vendors. pricing for ovens is as follows. oven only $790 oven with installation service 850 oven with maintenance services 970 oven with installation and maintenance services 990 in each instance in which maintenance services are provided, the maintenance service is separately priced within the arrangement at $180. additionally, the incremental amount charged by sheffield appliance center for installation approximates the amount charged by independent third parties. ovens are sold subject to a general right of return. if a customer purchases an oven with installation and/or maintenance services, in the event sheffield appliance center does not complete the service satisfactorily, the customer is only entitled to a refund of the portion of the fee that exceeds $790. assume that a customer purchases an oven with both installation and maintenance services for $990. (b) indicate the amount of revenue that should be allocated to the oven, the installation, and to the maintenance contract.