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3. Bramley Manufacturing is considering three capital investment proposals. At this time, the company has funds available to pursue only one of the three investments
3. Bramley Manufacturing is considering three capital investment proposals. At this time, the company has funds available to pursue only one of the three investments (Click the icon to review the proposals.) Requirement Which investment should Bramley Manufacturing pursue at this time? Why? Since each investment presents a positive NPV, Bramley Manufacturing should use the (1) - to compare the profitability of each investment Use the method selected above to compare the profitability of each investment beginning with Equipment A. (Enter all amounts as positive numbers. Round your final answer to two decimal places.) Equipment Equipment Equipment (2) Divide by: (3) Which investment should Bramley Manufacturing pursue at this time? Why? Bramley should invest in Equipment (5) as it is the most profitable project 1: Data Table Equipment Equipment B Equipment C Present value of net cash inflows ...........S 1,705,000 $ 1,945,000 S 2,220,000 Investment............ (1,560,000) (1,556,000) (2,000,000 NPV. ....... S 155.000 $ 339,000 $ 220,000 Total cash inflows (1) O ARR O IRR O payback period O profitability index (2) O O Accounting rate of return O Expected annual net cash inflow Initial investment O Internal rate of return O Payback period O Present value of net cash inflows O Profitability index Total cash inflows Total cash inflows (5) O (3) O O Accounting rate of return O Expected annual net cash inflow Initial investment Internal rate of return O Payback period Present value of net cash inflows O Profitability index (4) O O Accounting rate of return O Expected annual net cash inflow Initial investment Internal rate of return O Payback period O Present value of net cash inflows O Profitability index 000
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