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Unequal lives-ANPV approach JBL Co has designed a new conveyor system. Management must choose among three alternative courses of action: (1) The firm can sell the design outright to another corporation with payment over 2 years. (2) It can license the design to another manufacturer for a period of 5 years, its likely product life. (3) It can manufacture and market the system itself, this alternative will result in 6 years of cash inflows. The company has a cost of capital of 11.2% Cash flows associated with each alternative are as shown in the following table. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Alternative Sell License Manufacture Initial investment (CF) $199,700 $200,300 $451,000 Year (t) Cash inflows (CF) 1 $199,000 $249,200 $200,300 2 250,000 100,700 245,000 3 80,500 200,300 2 ann a. The net present value for the option to sell is (Round to the nearest cent) Ann Initial investment (CF) Year (0) $199,700 $451,000 $199,000 250,000 1 2 3 4 5 6 $200,300 Cash inflows (CF) $249,200 100,700 80,500 60,400 39,900 $200,300 245,000 200,300 200,300 200,300 200,300 a. Calculate the net present value of each alternative and rank the alternatives on the basis of NPV. b. Calculate the annualized net present value (ANPV) of each alternative and rank them accordingly. c. Why is ANPV preferred over NPV when ranking projects with unequal lives? a. The net present value for the option to sell is $ (Round to the nearest cent.)