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Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)
Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Machine A Machine B $59,800 Machine C $129,500 Initial investment (CF) $85,300 Year (t) Cash inflows (CF) 1 $17,900 $11,900 $49,900 2 $17,900 $14,200 $29,500 3 $17,900 $15,800 $19,700 4 $17,900 $17,700 $19,600 5 $17,900 $19,500 $19,700 6 $17,900 $24,600 $29,700 $17,900 $40,100 $17,900 $50,200 878 Print Done X Question 8, P10-10 (similar to) Homework: Homework 4 HW Score: 60%, 18 of 30 points O Points: 0 of 3 Part 1 of 15 Save 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: The firm's cost of capital is 13%. 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 Pl. a. The NPV of press A is $ (Round to the nearest cent.)
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