a. Calculate the NPV for each machine over its life. Rank the machines in descending order on the basis of NPV.

b. Use the annualized net present value (ANPV) approach to evaluate and rank the machines in descending order on the basis of ANPV.

c. Compare and contrast your findings in parts(a) and (b). Which machine would you recommend that the firm acquire?

P12-14 (similar to) Question Help Unequal livesANPV approach 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 11.4% to evaluate each of them. The initial investment and annual cash inflows over the life of each machine are shown in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) - Machine A $92,400 Initial investment (CF) Year(t) $12,100 12,100 12,100 12,100 12,100 Machine B Machine C $65,300 $100,900 Cash inflows (CF) $9,700 $29.800 20,000 29,800 29,200 29,800 40,500 29,800 29,800 12.100 a. Calculate the NPV for each machine over its life. Rank the machines in descending order on the basis of NPV. IAMIDAN a. The net present value for machine A is $ . (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. 2 parts O remaining Clear All Check