Evans Industries wishes to select the best of three possible machines, each of which is expected to satisfy the firms ongoing need for additional aluminum-extrusion capacity. The three machinesA, B, and Care equally risky. The firm plans to use a 12% cost of capital to evaluate each of them. The initial investment and annual cash inflows over the life of each machine are shown in the following table.

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

	Machine A	Machine B	Machine C
Initial investment	-$92,000	-$65,000	-100,500
Years (t)	Cash Flows	Cash Flows	Cash Flows
1	12,000	10,000	30,000
2	12,000	20,000	30,000
3	12,000	30,000	30,000
4	12,000	40,000	30,000
5	12,000	----------	30,000
6	12,000	----------	---------