Question: = Homework: Chapter 10 Homework Question 9, P10-22 (simi.. Part 1 of 4 HW Score: 11.11%, 1 of 9 points O Points: 0 of 1

= Homework: Chapter 10 Homework Question 9, P10-22 (simi.. Part 1 of 4 HW Score: 11.11%, 1 of 9 points O Points: 0 of 1 Save Payback, NPV, and IRR Rieger Interational is attempting to evaluate the feasibility of investing $107.000 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: B. The firm has a 12% cost of capital. a. Calculate the pay back period for the proposed investment b. Calculate the net present value (NPV) for the proposed investment. c. Calculate the internal rule 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? a. The payback period of the proposed investment is years. (Round to two decimal places.) Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year (1) 2 Cash inflows (CF) $35.000 $30,000 $35.000 $30,000 $40,000 3 4 5 ( Print Done
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