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%. 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.

Machine 1 2 3

Initial investment 85,000 60,100 129,700 Year 1 18,400 11,600 50,300 2 18,400 14,100 29,900 3 18,400 16,400 20,100 4 18,400 18,200 20,000 5 18,400 20,300 19,900 6 18,400 25,000 29,800 7 18,400 0 39,800 8 18,400 0 49,500