Unequal lives ANPV approachEvans 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

12.7% to evaluate each of them. The initial investment and annual cash inflows over the life of each machine are shown in the following table.

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?

Please provide Excel calculations/formulas so I can learn how to process. Thank you

Machine A $92,700 Initial investment (CF) Year (t) 1 Machine B Machine C $64,200 $99,500 Cash inflows (CF) $10,500 $30,900 20,500 30,900 30,200 30,900 39,500 30,900 30,900 $12,600 12,600 12,600 12,600 12,600 12,600 2 3 4 5 6