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Stanton Manufacturing is considering three capital investment proposals. At this time, the company has funds available to pursue only one of the three investments.
Stanton Manufacturing is considering three capital investment proposals. At this time, the company has funds available to pursue only one of the three investments. (Click the icon to review the proposals.) Requirement Which investment should Stanton Manufacturing pursue at this time? Why? Since each investment presents a positive NPV, Stanton Manufacturing should use the 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 Divide by: Which investment should Stanton Manufacturing pursue at this time? Why? Stanton should invest in Equipment , as it is the most profitable project. Data table Equipment A Equipment B Equipment C Present value of net cash inflows S Investment 1,710,000 $ (1,425,000) 1,950,000 $ (1,875,000) 2,180,000 (1,744,000) $ 285,000 $ 75,000 $ 436,000 NPV
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