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

Which investment should Hudson pursue at this time? Why?

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Equipment A $ 1,647,351 (1,484,100) Equipment C Equipment B Present value of net cash inflows Initial investment $ 1,969,888 (1,641,573) $ 328,315 $ 2,064,830 (1,764,812) 300,018 $ 163,251 NPV