Unequal lives-ANPV approach JBL Co. has designed a new conveyor system. Management must choose among three alternative courses of action: (1) The firm can sell the design outright to another corporation with payment over 2 years. (2) It can license the design to another manufacturer for a period of 5 years, its likely product life. (3) It can manufacture and market the system itself, this alternative will result in 6 years of cash inflows. The company has a cost of capital of 11.6%. Cash flows associated with each alternative are as shown in the following table. (Click on the icon here in order to copy the contents of the data table below into a spreadsheet) Alternative Sell License Manufacture $199,500 $199,700 $450,100 Initial investment (CF) Year (f) Cash Inflows (CF) THI 1 $199,300 $251,000 $199,700 2 250,700 99,400 250,000 3 79,500 199,700 60,400 199,700 in 40 nnnn a The net present value for the option to sell is $ (Round to the nearest cent.) Clear all Check anewer Help me solve this View an example Get more help. CO 1111L5 Initial investment (CFO) -Year (t) 1 2 $199,700 Cash inflows (CF) $251,000 99,400 $199,500 $450,100 $199,300 $199,700 250,700 250,000 79,500 199,700 - 60,400 199,700 40,100 199,700 199,700 a. Calculate the n present value of each alternative and rank the alternatives on the basis of NPV. b. Calculate the annualized net present value (ANPV) of each alternative and rank them accordingly. c. Why is ANPV preferred over NPV when ranking projects with unequal lives? CHECOD a. The net present value for the option to sell is $ (Round to the nearest cent.) Help me solve this View an example: Get more help 3456 P