Table 10 -1. Capital Budgeting Choices

Table 10 -1. Capital Budgeting Choices

-Refer to Table 10 -1. Glen Write owns an engineering firm. He asked his employees for suggestions regarding equipment they thought the firm would need during the next year. They suggested the purchase of eight pieces of equipment. Glen calculated the net present value of each recommendation. Glenn has a policy of purchasing only one item per year. Based on NPV, which should he purchase?

A) 8
B) 6
C) 1
D) 5