You were just hired by the Drillago Company an oil drill company. The company is considering the replacement one of its old drill presses. The company has gathered the following cash flow of the alternative replacement presses. Your first task on the day you join the company is to evaluate using Net Present Value (NPV) method on the replacement of presses and recommend the type of press to be purchased by the company. The companys cost of capital is 15%. *

Press A $85,000 Press C $130,000 Initial Investment Years (0) 1 2 3 4 5 6 7 8 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 $18,000 Press B $60,000 Cash inflows $12,000 $14.000 $16,000 $18,000 $20,000 $25,000 $50,000 $30,000 $20,000 $20,000 $20,000 $30,000 $40,000 $50,000