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Round answers to three decimal points PTU-To (similar to Question Help NPV Mutually exclusive projects Hook Industries is considering the replacement of one of its
Round answers to three decimal points
PTU-To (similar to Question Help 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 n'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 P copy its contents into a spreadsheet.) Machine A $85.200 Machine B $59,600 Machine C $130,000 Initial investment (CFo) Year (t) $17,800 $17,800 $17,800 $17,800 $17,800 $17,800 $17,800 $17,800 Cash inflows (CFt) $11,700 $14,400 $16,300 $18,500 $19,800 $24,800 $49,900 $30,100 $19,600 $19,900 $19,800 $29,500 $39,500 $50,400 2 4 7 Drint Step by Step Solution
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