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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
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 machinesA, B, and C are equally risky. The firm plans to use a cost of capital of 11.6% 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.) Initial investment (CFO) Year (t) 1 23450 Machine A $91,700 Machine B $65,400 Cash inflows (CF+) Machine C $99,800 $11,600 $10,500 $30,600 11,600 20,300 30,600 11,600 30,800 30,600 11,600 39,000 30,600 11,600 30,600 a. The net present value for machine A is $ (Round to the nearest cent.) ...
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