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My NPV is always wrong, I missing a step somewhere. Please help and explain how I would use excel to answer. NPV: Mutually exclusive projects

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My NPV is always wrong, I missing a step somewhere. Please help and explain how I would use excel to answer.

image text in transcribed
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 assoeiated with each are shown in the following table. The firm's cost of capital is 15%. Machine A Machine B Machine C Initial investment (C130) -$85,000 -$60,000 -$130,000 Year (1') Cash inflows (C13,) 1 $1 8,000 $12,000 $5 0,0 00 18,000 14,000 30,000 1 8,000 1 6,000 20,0 00 1 8,000 1 8 ,000 20,0 00 1 8,000 20,000 20,0 00 1 8,000 25,000 30,0 00 1 8,000 40,0 00 1 8,000 5 0,000 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. (1. Calculate the profitability index (PI) for each press. e. Rank the presses from best to worst, using PI

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