Unequal lives- ANS V approach Evens nasse. wishes to select the best of three po

Question

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

Explanation / Answer

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)

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