NPVlong dashMutually exclusive projects$$Hook Industries is considering the replacement of one of its old metal stamping machines. Three alternative replacement machines are under consideration. The cash flows associated with each are shown in the following$$ table: LOADING.... The$$ firm'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 PI$.$

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Part $1$

a$.$ The NPV of press A is $($Round to the nearest$$ cent.$)$

Initial investment $84,80060,500130,500$

Year

$117,90012,00049,600$

$217,90013,70029,600$

$317,90015,50020,200$

$417,90017,60019,900$

$517,90020,30020,300$

$617,90025,00030,500$

$717,900040,200$

$817,900049,700$