Question: Parts A,B,C,D, and E into a spreadsheet.) Machine A $84,800 Initial investment (CF) Year (t) $18,400 $18,400 $18,400 $18,400 $18,400 $18,400 $18,400 $18,400 Machine B

Parts A,B,C,D, and E
into a spreadsheet.) Machine A $84,800 Initial investment (CF) Year (t) $18,400 $18,400 $18,400 $18,400 $18,400 $18,400 $18,400 $18,400 Machine B Machine C $60,400 $130,100 Cash inflows (CF) $12,500 $50,300 $14,300 $30,200 $15,500 $20,500 $17,500 $19,800 $19,800 $19,900 $24,500 $29,800 $39,600 $50,500 Print Done 1 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 firm's cost of capital is 12%. 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 Pl. a. The NPV of press A is $ . (Round to the nearest cent.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
