Question: Please only solve with a financial calculator, preferibly a BA II Plus professional from texas instruments. Thank you! NPV: Mutually exclusive projects Hook Industries is
Please only solve with a financial calculator, preferibly a "BA II Plus professional" from texas instruments. Thank you! NPV: Mutually exclusive projects Hook Industries is consider one of its old drill presses. Three alternative replacement presses ation. The relevant cash flows associated with each are shown in The firm's cost of capital is 15% PART 5 Long-Term Investment Decisions is considering the replacement of 396 Hook Indesplacement prn in the following table. ement presses are under consider- P10-10 own in the following table. Press A Press B Press C $130,000 P10-1: $60,000 Inicial investment (Co) $85,000 Cash inflows (CF,) Year (t) S18,000 $12,000 $0,000 $12,000 14,000 16,000 18,000 18,000 18,000 18,000 18,000 $50,000 30,000 20,000 20,000 20,000 30,000 40,000 50,000 4 P10- 20,000 25,000 18,000 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. Personal Finance
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