E Homework: Chapter 11 Homework Question 14, P11-29 (si... Part 1 of 9 HW Score: 25%, 4 of 16 points Points: 0 of 1 Save 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 machinesA, B, and C-are equally risky. The firm plans to use a cost of capital of 12.1% to evaluate each of them. The initial investrrient 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 comer of the data table below in order to copy its contents into a spreadsheet.) Machine A Machine B Machine C Initial investment (CF) $92,000 $65,900 $100,100 Year (0) Cash inflows (CF) $11,100 $10,700 $30,300 11.100 19.000 30,300 11.100 29,400 30,300 11,100 40.100 30,300 11.100 30,300 1. An a. The net present value for machine A is S. (Round to the nearest cent.) E Homework: Chapter 11 Homework Question 14, P11-29 (sl... Part 1 of 9 HW Score: 25%, 4 of 16 points O Points: 0 of 1 Save $92.000 Initial investment (CF) Year (0) $65,900 $100.100 Cash Inflows (CF) $10,700 $30,300 19.000 30.300 29,400 30,300 40,100 30,300 30,300 $11,100 11.100 11,100 11,100 11.100 11.100 3 4 5 6 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? a. The net present value for machine Ais S. (Round to the nearest cent.)