Explain... Data tablePresent value of net cashinflowsInvestmentNPVEquipment A$PrintEquipment B Equipment C1,705,000 $(1,550,000)155,000 $1,950,000 $(1,875,000)Done75,000 $I2,190,000(1,825,000)365,000 Bramley Manufacturing is considering three capital investment proposals. At this time, the company has funds availableto pursue only one of the three investments.(Click the icon to review the proposals.)RequirementWhich investment should Bramley Manufacturing pursue at this time? Why?Since each investment presents a positive NPV, Bramley Manufacturing should use the profitability index to comparethe profitability of each investment.Use the method selected above to compare the profitability of each investment beginning with Equipment A. (Enter allamounts as positive numbers. Round your final answer to two decimal places.)Equipment ADivide by:

The decision regarding investment in a project which are long term and requires used investment are…

Answered: Present value of net cash inflows…

Present value of net cash inflows Investment NPV Equipment A Equipment B $ $ Print 1,705,000 $ (1,550,000) 155,000 $ 1,950,000 $ (1,875,000) Done Equipment C 75,000 $ 2,190,000 (1,825,000) 365,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 52P

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Concept explainers

Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.

Question

Explain...

Data table
Present value of net cash
inflows
Investment
NPV
Equipment A
$
Print
Equipment B Equipment C
1,705,000 $
(1,550,000)
155,000 $
1,950,000 $
(1,875,000)
Done
75,000 $
I
2,190,000
(1,825,000)
365,000

Bramley 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 Bramley Manufacturing pursue at this time? Why?
Since each investment presents a positive NPV, Bramley Manufacturing should use the profitability index 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
Divide by:

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