Question
A.) The NPV of press A is $ _ (Round to the nearest cent.) - The NPV of press B is $ _ (Round to
A.) The NPV of press A is $ _ (Round to the nearest cent.)
- The NPV of press B is $ _ (Round to the nearest cent.)
- The NPV of press C is $ _ (Round to the nearest cent.)
B.) Based on NPV, Hook Industries should (accept or reject) press A.
- Based on NPV, Hook Industries should (accept or reject) press B.
- Based on NPV, Hook Industries should (accept or reject) press C.
C.) In ranking the presses from best to worst (Press A, B, or C) is the number 1 investment.
- (Press A, B, or C) is the number 2 investment.
- (Press A, B, or C) is the number 3 investment
D.) The PI of press A is _ (Round to two decimal places)
- The PI of press B is _ (Round to two decimal places)
- The PI of press C is _ (Round to two decimal places)
E.) In ranking the presses from best to worst (Press A, B, or C) is the number 1 investment.
- (Press A, B, or C) is the number 2 investment.
- (Press A, B, or C) is the number 3 investment
ULUILU ULTUJ COMIC JUIL. 210, 2l JUL 10 PL P10-10 (similar to) NPV-Mutually exclusive projects Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration. The relevant cash flows associated with each are shown in the following table: E. The firm's cost of capital is 13%. 0 Data Table - X a. Calculate the net present value (NPV) of each press, b. Using NPV, evaluate the acceptability of each press. c. Rank the presses from best to worst using NPV. d. Calculate the profitability index (PI) for each press. e. Rank the presses from best to worst using PI. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) a. The NPV of press Ais $ (Round to the nearest cent.) O Machine A $84,600 Machine C $130,300 Initial investment (CF) Year (t) Machine B $59,800 Cash inflows (CF) $12,200 $14,100 $16,400 $18,500 $20,100 $24,500 $18,300 $18,300 $18,300 $18,300 $18,300 $18,300 $18,300 $18,300 con AWN $50,100 $29,700 $20,400 $19,900 $19,800 $29,700 $40,400 $50,200 Enter your answer in the answer box and then click Check 14 parts remaining should accept press B. (Select from the drop-down menu.)
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