Part $1$ ds $0$

Points: $0$ af $4$

Save

Unequal lives: ANPV approach. Evans Industries wishes to select the best of three possble machines, each of utich is expected lo satisty the firm's ongong need for aditional atiminam edruson capacity. The three machines$-$A$,$ B$,$ and C$-$are equally risky. The firm plans to use a cost of capital of $11\mathrm{.}5\%$ to evaluate each of them. The intial rvestinent and arrual cash nflows over the ife of each machine are shown in the following table. $($Click on the icon here O in order to copy the corflents of the data table below into a sereadsheet$)$

$\backslash$table$[[,$Machine A$,$Machine B$,$Machine C$],[$Initial investment $(C{F}_0),$$$92,100,$$$64,400,$$$99,800],[$Year $($f$),$Cash inflows $($CF$,)],[1,$$$11,100,$$$9,800,$$$30,800],[2,11,100,19,000,30,800],[3,11,100,30,700,30,800],[4,11,100,39,900,30,800],[5,11,100,-,30,800]]$

a$.$ The net present value for machine $A$ is $1($Round to the nearest cent$)$

n example

Get more help $-$

Search