a. Calculate the net present value (NPV) of each press b. Using NPV, evaluate the acceptability of each press. c. Rank the presses from best to worst using NPV. d. Calculate the profitability index (PI) for each press e. Rank the presses from best to worst using PI. a. The NPV of press Aiss. (Round to the nearest cent.) 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.) Machine A Machine B Machine C Initial investment (CF) $84,600 $60,400 $130.200 Year (t) Cash inflows (CF) 1 $18,500 $12,400 $50,400 2 $18,500 $13,900 $29,700 3 $18,500 $15,800 $19,600 4 $18,500 $17,500 $20,500 5 $18,500 $19,800 $19,700 6 $18,500 $24.700 $30,500 7 $18,500 $40,500 8 $18,500 $50,400 Print Done Payback, NPV, and IRR Rieger International is evaluating the feasibility of investing $88,000 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 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? a. The payback period of the proposed Investment is years. (Round to two decimal places.) a. Calculate the net present value (NPV) of each press b. Using NPV, evaluate the acceptability of each press. c. Rank the presses from best to worst using NPV. d. Calculate the profitability index (PI) for each press e. Rank the presses from best to worst using PI. a. The NPV of press Aiss. (Round to the nearest cent.) 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.) Machine A Machine B Machine C Initial investment (CF) $84,600 $60,400 $130.200 Year (t) Cash inflows (CF) 1 $18,500 $12,400 $50,400 2 $18,500 $13,900 $29,700 3 $18,500 $15,800 $19,600 4 $18,500 $17,500 $20,500 5 $18,500 $19,800 $19,700 6 $18,500 $24.700 $30,500 7 $18,500 $40,500 8 $18,500 $50,400 Print Done Payback, NPV, and IRR Rieger International is evaluating the feasibility of investing $88,000 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 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? a. The payback period of the proposed Investment is years. (Round to two decimal places.)
