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 12.2% to evaluate each of them. The initial investment and annual cash inflows over the life of each machine are shown in the following table. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Machine A Machine B Machine C Initial investment (CF) $91,300 $64,300 $100,500 Year (t) Cash inflows (CF) $11,000 $10,600 $29,800 11,000 20,300 29,800 3 11,000 29,000 29,800 1 2 11 non 2010 20 RON a. The net present value for machine Ais $. (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer. 8 remaining Clear All Check Answer P11-29 (similar to) Question Help Year() Initial investment (CF) $91,300 $64,300 $100,500 Cash inflows (CF) $11,000 $10,600 $29,800 11,000 20,300 29,800 11,000 29,000 29,800 11,000 39,100 29,800 11.000 29.800 11,000 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 not 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? a. The net present value for machine Ais $ (Round to the nearest cent.) 1 2 3 4 5 6 Enter your answer in the answer box and then click Check Answer. 8 parts remaining Clear All Chock