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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

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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 11%. 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 (Pl) for each press. e. Rank the presses from best to worst using PI. a. The NPV of press Ais S. (Round to the nearest cent.) The NPV of press Bis $ . (Round to the nearest cent.) The NPV of press C is $. (Round to the nearest cent.) b. Based on NPV, Hook Industries should press A. (Select from the drop-down menu.) Based on NPV, Hook Industries should press B. (Select from the drop-down menu.) Based on NPV, Hook Industries should press C. (Select from the drop-down menu.) is the number 1 investment. (Select from the c. In ranking the presses from best to worst, drop-down menu.) is the number 2 investment. (Select from the drop-down menu.) is the number 3 investment. (Select from the drop-down menu.) d. The Pl of press Ais (Round to two decimal places.) is the number 1 investment. (Select e. In ranking the presses from best to worst, drop-down menu.) is the number 2 investment. (Select from the drop-down menu.) is the number 3 investment. (Select from the drop-down menu.) Enter your answer in each of the answer boxes. - . X Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Machine A $85,300 Machine C $130,400 Initial investment (CF) Year (t) 1 2 3 4 5 6 7 8 $18,300 $18,300 $18,300 $18,300 $18,300 $18,300 $18,300 $18,300 Machine B $59,500 Cash inflows (CF) $12,400 $14,500 $15,600 $18,000 $20,100 $24,700 $50,400 $29,900 $19,600 $19,500 $19,700 $29,700 $40,500 $50,000

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