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 11.3%. 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 $199,800 License $200,800 Manufacture $450,300 Initial investment (CFO) Year (t) Cash inflows (CFt) 1 $250,200 $200,900 $199,500 249,500 2 99,600 245,000 3 80,600 200,900 4 60,200 200,900 5 40,600 200,900 C a. The net present value for the option to sell is $. (Round to the nearest cent.) Initial investment (CFO) Year (t) 1 $199,800 $200,800 $450,300 Cash inflows (CFt) $199,500 $250,200 $200,900 249,500 99,600 245,000 80,600 200,900 60,200 200,900 40,600 200,900 6 200,900 a. Calculate the net 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? a. The net present value for the option to sell is $ (Round to the nearest cent.) 345W N