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

 

Luton Manufacturing is considering three capital investment proposals. At this tirme, the company has funds available to pursue only one of the three investments. E (Click the icon to review the proposals.) Requirement Which investment should Luton Manufacturing pursue at this time? Why? Since each investment presents a positive NPV, Luton Manufacturing should use the to cormpare the profitability of oach investnent - X Data table ARR IRR Equipment A Equipment B Equipment C payback perlod Present value of net cash inflows 1,695,000 S 1,945,000 S 2,220,000 profitability index (1,500,000) (1,556,000) (2,000,000) Investment 195,000 S 389,000 S 220,000 NPV Print Done

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