Hudson Manufacturing is considering three capital investment proposals. At this time, Hudson only has funds available to

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Hudson Manufacturing is considering three capital investment proposals. At this time, Hudson only has funds available to pursue one of the three investments.

Equipment A Equipment B Equipment C Present value of net cash inflows $ 1,647,351 $ 1,969,888 $ 2,064,830 Initial investment (1,484,100) (1,641,573) (1,764,812) $ 163,251 328,315 NPV 300,018

Which investment should Hudson pursue at this time? Why?

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Horngrens Accounting

ISBN: 978-0134674681

12th edition

Authors: Tracie L. Miller nobles, Brenda L. Mattison, Ella Mae Matsumura

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Question Posted: Feb 12, 2018 10:23 AM

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Hudson Manufacturing is considering three capital investment proposals. At this time, Hudson only has funds available to

Question:

Equipment A Equipment B Equipment C Present value of net cash inflows $ 1,647,351 $ 1,969,888 $ 2,064,830 Initial investment (1,484,100) (1,641,573) (1,764,812) $ 163,251 328,315 NPV 300,018

Step by Step Answer:

Equipment Present value of net cash inflows Initial investment Profitability Index A 1647351 1484100 ...View the full answer

Horngrens Accounting

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