Unequal livesANPV approachEvans 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 Care equally risky. The firm plans to use a cost of capital of 12.8% 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 here in order to copy the contents of the data table below into a spreadsheet.)

	Machine A	Machine B	Machine C
Initial investment (CF0)	$92,400	$65,300	$100,600
Year (t )	Cash inflows (CFt)
1	$11,800	$9,500	$30,100
2	11,800	20,100	30,100
3	11,800	29,800	30,100
4	11,800	39,500	30,100
5	11,800		30,100
6	11,800

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 net 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?