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Part $1$

NPVMutually 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: LOADING.... The$$ firm's cost of capital is $\%.$

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 $$$

$$

enter your response here.$($Round to the nearest$$ cent.$)$

Part $2$

The NPV of press B is $$$

$$

enter your response here. $($Round to the nearest$$ cent.$)$

Part $3$

The NPV of press C is$$ $

$$

enter your response here. $($Round to the nearest$$ cent.$)$

Part $4$

b$.$ Based on$$ NPV$,$ Hook Industries should

$$

accept

reject

press A$.($Select from the$$ drop$-$down menu.$)$

Part $5$

Based on$$ NPV$,$ Hook Industries should

$$

accept

reject

press B$.($Select from the$$ drop$-$down menu.$)$

Part $6$

Based on$$ NPV$,$ Hook Industries should

$$

reject

accept

press C$.($Select from the$$ drop$-$down menu.$)$

Part $7$

c$.$In ranking the presses from best to$$ worst,

$$

Press B

Press A

Press C

is the number $1$ investment.$($Select from the$$ drop$-$down menu.$)$

Part $8$

$$

Press C

Press A

Press B

is the number $2$ investment.$($Select from the$$ drop$-$down menu.$)$

Part $9$

$$

Press B

Press C

Press A

is the number $3$ investment.$($Select from the$$ drop$-$down menu.$)$

Part $10$

d$.$ The PI of press A is

$$

enter your response here.$($Round to two decimal$$ places.$)$

Part $11$

The PI of press B is

$$

enter your response here. $($Round to two decimal$$ places.$)$

Part $12$

The PI of press C is

$$

enter your response here. $($Round to two decimal$$ places.$)$

Part $13$

e$.$In ranking the presses from best to$$ worst,

$$

Press B

Press C

Press A

is the number $1$ investment.$($Select from the$$ drop$-$down menu.$)$

Part $14$

$$

Press B

Press A

Press C

is the number $2$ investment.$($Select from the$$ drop$-$down menu.$)$

Part $15$

$$

Press C

Press A

Press B

is the number $3$ investment.$($Select from the$$ drop$-$down menu.$)$