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Ahmed is attempting to evaluate the viability of investing $95,000 in a piece of equipment that has a 5-year life. The firm has estimated the
Ahmed is attempting to evaluate the viability of investing $95,000 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 12% 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. *
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