The question is ''Calculate the profitability index (PI) for each press''.
Extracted text: 2- Bell Manufacturing Inc. 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 firm's cost of capital is 15%. Machine A Machine B Machine C Initial Investment 85,000 $ 60,000 $ 130,000 $ Year Cash Inflows 12,000 $ 50,000 $ 30,000 20,000 20,000 20,000 30,000 40,000 1 18,000 $ 2 18,000 14,000 16,000 18,000 3 18,000 18,000 18,000 18,000 18,000 4 5 20,000 6. 25,000 7 --- -- 8 18,000 50,000