Hook Industries is considering the replacement of one of its old drill presses. Three alternative replacement presses (A, B and C) are under consideration. The relevant cash flows associated with each are shown in the excel sheet uploaded on Eduoasis. The r in the excel sheet (Yellow color) represents required rate of return.

Calculate the payback period, internal rate of return, net present value, and profitability index of proposed projects. Select one project after doing the above analysis and justify the selection.

1 0.13 B 0.13 Year Year 2 3 4 0 1 5 2 6 3 A CF 0 -515000 1 60000 2 90000 3 165000 4 230000 5 205000 6 140000 7 110000 8 70000 9 80000 7 4 CF -550000 72000 90000 155000 225000 205000 140000 110000 75000 50000 80000 8 5 6 9 10 11 8 9 12 13 10 M N o P Q 0.13 Year 1 C CF 0 -645000 70000 2 90000 3 170000 4 230000 5 225000 6 140000 7 115000 8 100000 9 90000 10 80000 11 70000