1) Evans Industries wishes to select the best of three possible machines, each of which is expected to satisfy the firm's ongoing need for additional aluminum-extrusion capacity. The three machines (A,B, and C) are equally risky. The firm plans to use a cost of capital of 6.2% to evaluate each of them. The initial investment and annual cash inflows over the life of each machine are shown in the following table 1. Calculate the NPV for each machine over its life. Rank the machines in descending order on the basis of NPV. 2. Use the annualized net present value (ANPV) approach to evaluate and rank the machines in descending order on the basis of ANPV. (Hint: when calculating the ANPV, report the absolute value of the ANPV for ranking) Machine A Machine B Machine C Initial investment 51,500 75,000 105,500 Year 1 2 3 Cash inflows 12,200 10,800 12,200 20,300 12,200 30,700 12,200 40,600 12,200- 12,200- 29,800 29,800 29,800 29,800 29,800 4 5 6