P8-7. Scotty Manufacturing is considering the replacement of one of its machine tools. Three alternative replacement tools-A, B, and C-are under con- sideration. The cash flows associated with each are shown in the following table. The firm's cost of capital is 15 percent Initial Cash $50,000 Outflow (CF Year (t) $95,000 $150,000 Cash Inflows (CF $20,000 20,000 20,000 20,000 20,000 20,000 20,000 20,000 10,000 12,000 13,000 15,000 17,000 21,000 $ 58,000 35,000 23,000 23,000 23,000 35,000 46,000 58,000 4 a. Calculate the NPV of each alternative tool. b. Using NPV, evaluate the acceptability of each tool. c. Rank the tools from best to worst, using NPV