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RT FIVE Long-Term inves P10-22 Payback, NPV, and IRR Rieger International is evaluating the feasibility...

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RT FIVE Long-Term inves P10-22 Payback, NPV, and IRR Rieger International is evaluating the feasibility of invest the cash inflows associated with the proposal, as shown in the following table. The ing $95,000 in a piece of equipment that has a 5-year life. The firm has estimated firm has a 12% cost of capital. Year (1) 1 2 3 4 5 Cash inflows (CF) $20,000 25,000 30,000 35,000 40,000 LG 2 LGC LG a. Calculate the payback period for the proposed 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 acceptability of the proposed investment using NPV and IRR. What recommendation would you make relative to implementation of the project? Why

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