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Please answer all, thank you! NPV Mutually exclusive projects Hook Industries is considering the replacement of one of its old drill presses. Three alternative replacement
Please answer all, thank you!
NPV Mutually exclusive projects Hook Industries is considering the replacement of one of its old drill presses. Three alternative replacement presses are under consideration. The relevant cash flows associated with each are shown in the following table E3. The firm's cost of capital is 15%. 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 (P) for each press. e. Rank the presses from best to worst using Pl a. The NPV of press A is l. Round to the nearest cent The NPV of press B is Round to the nearest dollar) The NPV of press C is Round to the nearest dollar. b. Based on NPV, Hook Industries should press A. (Select from the drop-down menu.) Based on NPV, Hook Industries should Y press B. (Select from the drop-down menu Y press C. (Select from the drop-down menu.) Based on NPV, Hook Industries should c. In ranking the presses from best to worst, s the number 1 investment. (Select from the drop-down menu Y is the number 2 investment. (Select from the drop-down menu.) Y is the number 3 investment. (Select from the drop-down menu.)Step by Step Solution
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