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URGENT THANK YOU NPV-Mutually exclusive projects Hook Industries is considering the replacement of one of its old metal starriping machines. Three alternative replacement machines are
URGENT THANK YOU
NPV-Mutually exclusive projects Hook Industries is considering the replacement of one of its old metal starriping machines. Three alternative replacement machines are under consideration. The cash flows associated with each are shown in the following table: The firm's cost of capital is 10% a. Calculate the nel 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 profitably index (Pl) for each press. c. Rank the presses from best to worst using PL - X Data table (Click on the icon here in order to copy the contents of the data table below into a spreadshoot.) a. The NPV of press Ais $. (Round to the nearest cent.) Machine C $130,300 The NPV of press Bis $. (Round to the nearest cent.) ( The NPV of press Cis S. (Round to the nearest cent.) Initial Investment (CF) Year (t) 1 2 3 4 5 6 7 7 8 Machine A Machine B $85,000 $60,500 Cash Inflows (CF) $17,700 S11,600 $17,700 $13,700 $17.700 $15,600 $17,700 $17.600 $17.700 $19,500 $17,700 $25,500 $17.700 $17.700 b. Based on NPV, Hook Industries should , press A. (Select from the drop-down menu.) $50,300 $29,800 $20,000 S20,300 S20.100 $30,200 S40, 100 S49,800 Based on NPV Hook Industries should V press B. (Select from the drop-down menu.) Based on NPV, Hook Industries should press C. (Select from the drop-down menu.) c. In ranking the presses frorri best to worst, is the number 1 investment. (Select from the drop-down menu.) is the number 2 investment. (Select from the drop-down menu.) Print Done is the number 3 investment. (Select from the drop-down menu.) d. The Pl of press A is (Round to two decimal places.) The Pl of press B is (Round to two decimal places.) The Pl of press C is (Round to two decimal places.) e. In ranking the presses from best to worst, is the number 1 investment. (Select from the 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.)Step by Step Solution
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