Scotty Manufacturing is considering the replacement of one of its machine tools. Three alternative replacement tools—A, B, and C—are under consideration. The cash fl ows associated with each are shown in the following table. The fi rm’s cost of capital is 15 percent. AB C Initial Cash Outfl ow (CF0 ) $95,000 $50,000 $150,000 Year (t) Cash Infl ows (CFt ) 1 $20,000 $10,000 $ 58,000 2 20,000 12,000 35,000 3 20,000 13,000 23,000 4 20,000 15,000 23,000 5 20,000 17,000 23,000 6 20,000 21,000 35,000 7 20,000 — 46,000 8 20,000 — 58,000 a. Calculate the NPV of each alternative tool. b. Using NPV, evaluate the acceptability of each tool. c. Rank the tools from best to worst, using NPV