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: (MISSING D & E)

Machine A	Machine B	Machine C
Initial investment (CF0)	$84,900	$59,800	$130,100
Year (t)	Cash inflows (CFt)
1	$18,500	$12,100	$50,100
2	$18,500	$14,300	$29,500
3	$18,500	$16,400	$20,400
4	$18,500	$17,600	$20,300
5	$18,500	$20,100	$20,500
6	$18,500	$25,400	$30,000
7	$18,500		$39,600
8	$18,500		$49,500

The firm's cost of capital is 14%.

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.

a. The NPV of press A is $918.98918.98. (Round to the nearest cent.)

The NPV of press B is $5318.775318.77. (Round to the nearest cent.)

The NPV of press C is $19828.2719828.27. (Round to the nearest cent.)

b. Based on NPV, Hook Industries should accept press A.(Select from the drop-down menu.)

Based on NPV, Hook Industries should accept press B.(Select from the drop-down menu.)

Based on NPV, Hook Industries should accept press C.(Select from the drop-down menu.)

c.In ranking the presses from best to worst, Press C is the number 1 investment.(Select from the drop-down menu.)

Press B is the number 2 investment.(Select from the drop-down menu.)

Press A is the number 3 investment.(Select from the drop-down menu.)

MISSING D & E

d.Calculate the profitability index (PI) for each press.

e.Rank the presses from best to worst using PI.