Reference no: EM132500993
Using capital rationing to make capital investment decisions Hudson Manufacturing is considering three capital investment proposals. At this time, Hudson only has funds available to pursue one of the three investments.
Equipment A Equipment B Equipment C
Present value of net cash inflows $ 1,647,351 $ 1,969,888 $ 2,064,830
Initial investment (1,484,100) (1,641,573) (1,764,812)
NPV $ 163,251 $ 328,315 $ 300,018
Question 1: What the Best Investment using capital rationing?
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What the best investment using capital rationing
: What the Best Investment using capital rationing? Using capital rationing to make capital investment decisions Hudson Manufacturing
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