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8. Sheffield Manufacturing is considering three capital investment proposals. At this time, the company has funds available to pursue only one of the three
8. Sheffield Manufacturing is considering three capital investment proposals. At this time, the company has funds available to pursue only one of the three investments. View the capital investment proposals. 17 Requirement Which investment should Sheffield Manufacturing pursue at this time? Why? Paper Size Since each investment presents a positive NPV, Sheffield 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 A Equipment B Equipment C (2) Divide by: (4) (3) Which investment should Sheffield Manufacturing pursue at this time? Why? Sheffield should invest in Equipment (5) 17: Capital investment proposals , as it is the most profitable project. Equipment A Present value of net cash inflows $ 1,710,000 $ (1,425,000) Investment. $ 285,000 $ Equipment B 1,945,000 $ (1,556,000) 389,000 $ Equipment C 2,210,000 (2,125,000) 85,000 NPV.. ARR IRR payback period Internal rate of return Accounting rate of return O Payback period profitability index O Expected annual net cash inflow Initial investment O Present value of net cash inflows Profitability index Accounting rate of return Expected annual net cash inflow Initial investment Internal rate of return Payback period Present value of net cash inflows Profitability index Total cash inflows Letter 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 (4) O Total cash inflows 5 000 BCA
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