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Unequal livesANPV 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 12.6% 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 (CF) Year (t) 1 2 3 4 5 6 Machine A Machine B Machine C $91,500 $65,400 $100,900 Cash inflows (CF) $12.300 $10,600 $29,800 12,300 21.000 29,800 12.300 30.500 29,800 12,300 39,500 29,800 12,300 29,800 12,300 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? a. The net present value for machine A is (Round to the nearest cent.) The net present value for machine B is $. (Round to the nearest cent.) The net present value for machine C is $ (Round to the nearest cent.) Rank the machines in descending order on the basis of NPV. Rank the projects below. (Select from the drop-down menus.) First Project Second: Project Third Project b. The ANPV for machine Ais $ (Round to the nearest cent.) The ANPV for machine B is s (Round to the nearest cent.) The ANPV for machine C is $ (Round to the nearest cent.) Rank the projects below. (Select from the drop-down menus.) First: Second: Third: Machine Machine Machine c. Compare and contrast your findings in parts (a) and (b). Which machine would you recommend that the firm acquire? (Select from the drop-down menus.) Machine should be acquired since it offers the highest ANPV. Not considering the difference in project lives, Machine has also the highest NPV

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