Scotty Manufacturing is considering the replacement of one of its machine tools. Three alternative replacement tools A, B, and C are under consideration. The cash flows associated with each are shown in the following table. The firms cost of capital is 15%.

Initial Cash Outflow (CF0):	A	B	C
	$95,000	$50,000	$150,000
Year (t)	Cash Inflows (CFt)
1	$ 20,000	$ 10,000	$ 58,000
2	20,000	12,000	35,000
3	20,000	13,000	23,000
4	20,000	15,000	23,000
5	20,000	17,000	23,000
6	20,000	21,000	35,000
7	20,000	---	46,000
8	20,000	---	58,000

Calculate the NPV of each alternative.

Using NPV, evaluate the acceptability of each tool.

Rank the tools from best to worst in terms of NPV.