Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

All techniques Reger Inbomational in evaluating the feasibility table The firm has a cost of capital of 9% a. Calculate the pastack period for the

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
All techniques Reger Inbomational in evaluating the feasibility table The firm has a cost of capital of 9% a. Calculate the pastack period for the proposed in b. Calculate the decounted payback period for the propesed investment Calculate the nut prest value (NPV) or the proposed invest d. Calculate the probability index for the proposed investment . Calculate the internal rate of entorn (RR) for the proposed investment $53,000 in a piece of equipment that has a 5-year Me The fem has eated the cash flo 1. Calculate the modified internal rate of return (MIRR) for the proposed investment 9- Evaluate the acceptability of the proposed investment uning NPR and MRR the blowing it 20 TH ng rs st Flo Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year (1) 1 2345 5 Print Cash inflows (CF) $20,000 $35,000 $25,000 $20,000 $35,000 Done - X a. The payback period of the proposed investment is years. (Round to two decimal places.) b. Calculate the discounted cash flows for the proposed investment in the following table. (Round to the nearest cent.) Cash Flow Discounted Cash Flow -$83,000 - $83,000.00 $20,000 $35,000 $25,000 $20,000 $35,000 Year 0 1 2 345 The discounted payback period of the proposed investment is years. (Round to two decimal places.) c. The NPV of the proposed investment is $ (Round to the nearest cent.) d. The probability index of the proposed investment is e. The IRR of the proposed investment is % (Round to two decimal places.) f. The MIRR of the proposed investment is%. (Round to two decimal places.) g. Should Rieger International accept or reject the proposed investment? (Select the best answer below.) A. Reiect (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

14.1 Goodness-of-Fit Tests: Specified Probabilities

Answered: 1 week ago

Question

1-4 How will MIS help my career?

Answered: 1 week ago