Humbolt Shipping Line, Ltd. based in Hamburg, Germany, must continually make significant capital investments in ships. Some of these decisions require comparisons of strategic alternatives. For example, not all of the company’s ships are the same size. Different-sized ships offer alternative advantages and disadvantages. Suppose the company is currently trying to decide between two investment options. It is weighing the purchase of three extremely large ships for a total of €2,500,000 versus five smaller ships for a total of €1,400,000. Information regarding these two alternatives is provided below:   Three larger shipd Five smaller ships Initial investment 2,500,000€ 1,400,000€ Estimated useful life 20 years 20 years Annual revenues(accural) 500,000 € 380,000€ Annual expenses(accural) 200,000€ 180,000€ Annual cash inflows 550,000€ 430,000€ Annual cash outflows 222,250€ 206,350€ Estimated salvage value* 500,000€ 0€ Discount rate  9% 9%   Instructions Calculate the following parameters of these proposals: cash payback  net present value    2.Discuss the implications of your findings.    *Estimated Salvage Value: the estimated sales price of the ships after its designated years of use

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 attached: . 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.

Overall, you should find conflicting recommendations based on the various criteria. Why is this occuring?

TLT Ltd is considering the purchase of a new machine for use in its production process. Management has developed three alternative proposals to help evaluate the machine purchase. Only one of these proposals can be implemented. Proposals A and B both have the same cost to set up, but the output from proposal A (as measured by future net cash flows) commences at a high rate and then declines over time, while Proposal B starts at a low rate and then increases over time. Proposal C involves buying two of the machines considered under proposal B. That is, proposal C is simply Proposal B scaled by a factor of two. Proposal C results in net cash flows which are similar in magnitude to proposal A's net cash flows in the first two years. The estimated net cash flows, internal rates of return and net present values at 9% and 11% for each proposal are given in the following table. Proposal A -$290,000 $100,000 $90,000 Proposal B -$290,000 $40,000 $50,000 Proposal C -$580,000 $80,000 $100,000 End…