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Table: Press A Press B Press C Initial investment $84,500 $59,800 $129,800 Year Cash inflows 1 $18,000 $11,500 $49,800 2 $18,000 $14,200 $29,700 3 $18,000

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Table:

Press A Press B Press C
Initial investment $84,500 $59,800 $129,800
Year Cash inflows
1 $18,000 $11,500 $49,800
2 $18,000 $14,200 $29,700
3 $18,000 $16,400 $19,700
4 $18,000 $18,000 $19,500
5 $18,000 $20,100 $19,800
6 $18,000 $25,400 $30,300
7 $18,000 $0 $39,700
8 $18,000 $0 $49,900
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:E firm's cost of capital is 14%. dobThe The 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

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