a. The NPV of press A is $ $8,874.05. (Round to the nearest cent.) The NPV of press B is $ $10,754.67. (Round to the nearest cent.) The NPV of press C is $ $36,292,11". (Round to the nearest cent.) b. Based on NPV, Hook Industries should accept press A. (Select from the drop-down menu.) Based on NPV, Hook Industries should accept press B. (Select from the drop-down menu.) Based on NPV, Hook Industries should accept press C. (Select from the drop-down menu.) c. In ranking the presses from best to worst, Press C is the number 1 investment. (Select from Press B is the number 2 investment. (Select from the drop-down menu.) Press A is the number 3 investment. (Select from the drop-down menu.) d. Calculate the profitability index (PI) for each press. e. Rank the presses from best to worst using Pl. d. The Pl of press A is 1.10" (Round to two decimal places.) The Pl of press B is 1.18. (Round to two decimal places.) The PI of press C is 1.28. (Round to two decimal places.) e. In ranking the presses from best to worst, Press C is the number 1 investment. (Select from the Press B is the number 2 investment. (Select from the drop-down menu.) The Pl of press B is 1.18. (Round to two decimal places.) The Pl of press C is 1.28. (Round to two decimal places.) e. In ranking the presses from best to worst, Press C is the number 1 investment Press B is the number 2 investment. (Select from the drop-down menu.) Press A is the number 3 investment. (Select from the drop-down menu.) Question is complete. Tap on the red indicators to see incorrect answers. All parts showing OK NOW 29 NPV-Mutually exclusive projects Hook Industries is considering the replacement of one of its old metal stamping machines. Three alterative 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 acceptablity of each press 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 Als $ (Round to the nearest cent.) to Data Table ojec ree altet ost of tion. (Click on the icon located on the top-right comer of the data table below in order to copy its contents into a spreadsheet.) alue scept tto dex t to Machine A $84,900 Machine C $130,100 Initial investment (CF) Year (0) 1 2 3 4 5 6 7 8 $17,700 $17,700 $17,700 $17,700 $17,700 $17,700 $17,700 $17,700 Machine B $59,500 Cash inflows (CF) $11,600 $13,800 $15.700 $18,000 $20,400 $25,200 $50,000 $30,500 $19,900 $19,900 $20,100 $30,500 $40,400 $49,600 wer Print Done Ch 29 W 6 v NA Ps F F5
