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

Requirement

Which investment should StanningtonStannington Manufacturing pursue at this time? Why? Since each investment presents a positive NPV, StanningtonStannington

Manufacturing should use the: ARR, IRR, payback period or profitability index to compare the profitability of each investment.

Data Table Equipment A Equipment B Equipment C Present value of net cash inflows (1,500,000) (1,580,000 (2,100,000) 180,000 $ 395,000 $ 105,000 NPV Print Done