Using discounted cash flow models to make capital

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Using discounted cash flow models to make capital investment decisions.

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


Equipment A

Equipment B

Equipment C

Present value of




net cash inflows

$ 1,735,915

$ 1,969,888

$ 2,207,765

Investment

(1,563,887)

(1,669,397)

(1,886,979)

NPV

$ 172,028

$ 300,491

$ 320,786

Requirement

1. Which investment should Brighton pursue at this time? Why?

Reference no: EM13483841

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