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Unequal lives - ANPV approach Evans Industries wishes to select the best of three possible machines, each of which is expected to Satisfy the firm's

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Unequal lives - ANPV 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 machines A,B, and C-are equally risky. The firm plans to use a cost of capital of 112% to evaluate each of them. The initial investment and annual cash inflows over the Ife of each machine are shown in the following table. (Click on the icon located on the toperight corner of the data table below in order to copy its contents into a spreadsheet.) 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 basts 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 A is : (Round to the nearest cent) Unequal lives - ANPV 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 machines A,B, and C-are equally risky. The firm plans to use a cost of capital of 112% to evaluate each of them. The initial investment and annual cash inflows over the Ife of each machine are shown in the following table. (Click on the icon located on the toperight corner of the data table below in order to copy its contents into a spreadsheet.) 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 basts 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 A is : (Round to the nearest cent)

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