L 123 A B C D E E26-27 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. 5 Equipment A Equipment B Equipment C Present value of net cash $ 1,647,351 S 1,969,888 $2,064,830 6 inflows 7 Initial investment (1.484,100) (1,641,573) -1,764,812 8 NPV $ 163,251 328.315 S 300.018 9 Which investment should Hudson pursue at this time? Why? Equipment Present value of net cash inflows Initial investment Profitability Index