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Stannington Manufacturing is considering three capital investment proposals. At this time, the company has funds available to purs only one of the three investments. (Click
Stannington Manufacturing is considering three capital investment proposals. At this time, the company has funds available to purs only one of the three investments. (Click the icon to review the proposals.) Requirement Which investment should Stannington Manufacturing pursue at this time? Why? Since each investment presents a positive NPV, Stannington 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 (3) Which investment should Stannington Manufacturing pursue at this time? Why? , as it is the most profitable project. Stannington should invest in Equipment (5) 7. Data Table Equipment A Equipment B Equipment C Present value of net cash inflows $ 1,690,000 $ 1,960,000 $ 2,185,000 Investment (1,625,000) (1,750,000) (1.900,000) $ 65,000 $ 210,000 $ 285,000 NPV (1) ARR IRR payback period profitability Index Total cash inflows OOOO 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 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 A Accounting rate of return Expected annual net cash inflow Initial investment 0000 Internal rate of return Payback period Present value of net cash inflows Profitability index B
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