Initial investment 84,700 60,000 129,800 Year 1 18,300 12,500 50,300 2 18,300 13,700 29,900 3 18,300 15,500 20,500 4 18,300 17,800 19,500 5 18,300 20,100 20,100 6 18,300 25,100 29,900 7 18,300 0 39,700 8 18,300 0 49,800

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 10%. 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.) Enter your answer in the answer box and then click Check