Question
NPVlong cash mutually exclusive projects Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under
NPVlong cash 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: LOADING.... 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 PI. Can you please explain how to do these questions??
P10-10 (similar to) Question Help NPVMutually 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%. i Data Table - X 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. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) a. The NPV of press A is $ 13129.14. (Round to the nearest cent.) . The NPV of press B is $5753.08). (Round to the nearest cent.) Machine A $84,500 Initial investment (CF) Year (t) 00 OUT AWN- $18,300 $18,300 $18,300 $18,300 $18,300 $18,300 $18,300 $18,300 Machine B Machine C $60,400 $129,600 Cash inflows (CF) $12,400 $50,100 $14,100 $29,900 $15,600 $19,800 $18,300 $20,400 $20,300 $19,700 $25,000 $29,700 $40,000 $50,200 Enter your answer in the answer box and then click Check Answer. Print Print Done Done 13 parts remaining Final CheckStep by Step Solution
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