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Please answer the Requirements according to the form (The numbers are not the same). Please make sure your answer is correct. Thanksss Norwich Manufacturing is
Please answer the Requirements according to the form (The numbers are not the same). Please make sure your answer is correct. Thanksss
Norwich Manufacturing is considering three capital investment proposals. At this time, Norwich only has funds available to pursue one of the three investments. (Click the icon to review the proposals.) Which investment should Norwich pursue at this time? Why? to compare the Since each investment requires a different initial investment and presents a positive NPV, Norwich Manufacturing should use the profitability of each investment. - ........ Data table Equipment C Present value of net cash inflows Equipment A Equipment B 1,775,424 $ 1,865,471 $ (1,530,538) (1,554,559) 2,014,650 (1,624,718) Initial Investment $ 244,886 $ 310,912 $ 389,932 NPV Print Done Since each investment requires a different initial investment and presents a positive NPV, Back 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 w 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 1,735,915 . 1,563,887 1.11 II Equipment B $ 1,920,111 $ 1,561,066 II 1.23 Equipment C $ 2,242,989 1,884,865 1.19 II Decision: Back should invest in Equipment B because the evaluation measure is higher than the other proposed investmentsStep by Step Solution
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