Question: Please help! 81907.31 is WRONG!!!!!! Please answer ALL PARTS, will give thumbs up. Thanks!! Unequal lives: ANPV approach Evans Industries wishes to select the best
Please help! 81907.31 is WRONG!!!!!! Please answer ALL PARTS, will give thumbs up. Thanks!!
Unequal lives: ANPV 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 machines-A, B, and C-are equally risky. The firm plans to use a cost of capital of 12.2% 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.) 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.)
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