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I want the solution of part (A,B,C,D,E) NPV-Mutually exclusive projects Hook Industries is considering the replacement of one of its old metal stamping machines. Three
I want the solution of part (A,B,C,D,E)
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 cash flows associated with each are shown in the following table: E. The firm's cost of capital is 11%. Data Table 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 $. (Round to the nearest cent.) (Click on the icon here e in order to copy the contents of the data table below into a spreadsheet.) Machine A Machine C $129,500 $85,200 Initial investment (CF) Year (t) 1 2 3 4 5 6 7 8 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 Machine B $60,100 Cash inflows (CF) $12,000 $13,600 $15,800 $17,500 $20,300 $25,100 $50,400 $30,400 $20,100 $19,700 $20,300 $29,700 $40,300 $50,200 Print Done Enter your answer in the answer box and then click CheckStep by Step Solution
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