Unequal lives ANS V approach Evens nasse wishes to select th

Unequal lives- ANS V approach Evens nasse. wishes to select the best of three posso e maer es each of unich 6xpectedto satisfy th, firm\'s ongo ng need for adatonai?minutHtruson capacey The meee machres-A B and C-e ea aty nsky The ?? plans to use a cost of Captal of 11 0%toevai ate each of them The ntal nvestment and analcash in owsoverteife of each machne are shown n the 1010 ng table ick on the icon ocated on the toor ht corner off to a spreadsheer) Initial investment ( 2,300 9200 0600 30.600 30,600 12.300 1,000 2,300 12,300 a. The net present value for maching A is Round to the nearest cent) The net present value for machine BRound to the nearest cent The net present value for machine C Round so the nearest cent Rank the machines in descending order on the base of Rank the projects below (3elet trom the drop-down menus Frst Second Thind Projedt Projed Projedt

Solution

NPV of A = -40,451.56

NPV of B = 7019.83

NPV of C = 11,708.02

first C

second B

third A

Discount rate	11.6000%
Cash flows	Year	Discounted CF= cash flows/(1+rate)^year	Cumulative cash flow
(91,600.00)	0	(91,600.00)	(91,600.00)
12,300.000	1	11,021.51	(80,578.49)
12,300.000	2	9,875.90	(70,702.59)
12,300.000	3	8,849.37	(61,853.22)
12,300.000	4	7,929.55	(53,923.67)
12,300.000	5	7,105.33	(46,818.35)
12,300.000	6	6,366.78	(40,451.56)