Payback, NPV, and IRR Rieger International is evaluating the foasibility of investing $7,000 in a...
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Payback, NPV, and IRR Rieger International is evaluating the foasibility of investing $7,000 in a piece of equipment that has a 5-year life. The firm has estimated the cash inflows associated with the proposal as shown in the following table: The firm has a 11% cost of capital a. Calculate the payback period for the proponed Investment, b. Calculate the net present value (NPV) for the proposed investment c. Calculate the internal rate of return (IRR), rounded to the nearest whole percent, for the proposed investment d. Evaluate the acceptabilty of the proposed investment using NPV and IRR. What recommendation would you make relative to implementation of the project? ata Table on the icon here in order to copy the contents of the data table below spreadsheet.) Year (1) 1 2 3 4 5 Cash inflows (CF) $40,000 $35,000 $35,000 $20,000 $20,000 Print Done


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