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There are two questions below that I need answered. Thank you so much for your help!

1. Hook industries is considering the replacement of one of its old drill presses. Three alternative replacement presses are under consideration. The relevant cash flows associated with each are shown in the following table. The firms cost of capital is 15%.

Initial Investment	Press A	Press B	Press C
	$84,500	$60,200	$129,600
Year (t)	Cash Inflows
1	$17,900	$12,000	$50,300
2	$17,900	$13,700	$29,600
3	$17,900	$15,900	$20,500
4	$17,900	$18,200	$20,100
5	$17,900	$20,400	$20,300
6	$17,900	$24,600	$29,500
7	$17,900	-	$39,500
8	$17,900	-	$50,200

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.

2. Bell Manufacturing is attempting to choose the better of two mutually exclusive projects for expanding the firms warehouse capacity. The relevant cash flows for the projects are shown in the following table. The firms cost of capital is 17%.

Initial Investment	Project X	Project Y
	$500,000	$280,000
Year (t)	Cash Inflows
1	$100,000	$120,000
2	$160,000	$120,000
3	$150,000	$85,000
4	$210,000	$50,000
5	$250,000	$30,000

a.??Calculate the IRR for each of the projects. Assess the acceptability of each project on the basis of the IRRs.

b.??Which project is? preferred?

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