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Brighton Manufacturing is considering three capital investment proposals. At this time, Brighton only has funds available to pursue one of the three investments. (Click the
Brighton Manufacturing is considering three capital investment proposals. At this time, Brighton only has funds available to pursue one of the three investments. (Click the icon to review the proposals.) Which investment should Brighton pursue at this time? Why? Since each investment requires a different initial investment and presents a positive NPV, Brighton Manufacturing should use the investment. to compare the profitability of each i X Data Table Equipment C Present value of net cash inflows Equipment A Equipment B $ 1,465,874 $ 2,046,654 $ (1,211,466) (1,734,453) 2,207,765 (1,780,456) Initial Investment 254,408 $ 312,201 $ 427,309 NPV Print Done Since each investment requires a different initial investment and presents a positive NPV, Bright Manufacturing should use the profitability index to compare the profitability of each investment. Select the labels for the evaluation measure you determined above. Enter the amounts into the formula, beginning with Equipment A, and calculate the amount you will use to evaluate each investment. (Enter all amounts as positive numbers. Round the evaluation measure to two decimal places, X.XX.) Present value of net cash inflows Initial investment = Profitability index Equipment A Equipment B = Equipment C
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