Unequal lives: ANPV approach Portland Products is considering the purchase of

one of three mutually exclusive projects for increasing production efficiency. The

firm plans to use a 14% cost of capital to evaluate these equal-risk projects. The initial

investment and annual cash inflows over the life of each project are shown in the

following table.Project X Project Y Project Z Initial investment (CF0) 2$78,000 2$52,000 2$66,000 Year (t) Cash inflows (CFt) 1 $17,000 $28,000 $15,000 2 25,000 38,000 15,000 3 33,000 2 15,000 4 41,000 2 15,000 5 2 2 15,000 6 2 2 15,000 7 2 2 15,000 8 2 2 15,000