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All techniques Rieger International is evaluating the feasibility of investing $ 9 3 , 0 0 0 in a piece of equipment that has a
All techniques Rieger International is evaluating the feasibility of investing $ in a piece of equipment that has a year life. The firm has estimated the cash inflows associated with the proposal as shown in the following table: The firm has a cost of capital of
a Calculate the payback period for the proposed investment.
b Calculate the discounted payback period for the proposed investment.
c Calculate the net present value NPV for the proposed investment.
d Calculate the probability index for the proposed investment.
e Calculate the internal rate of return IRR for the proposed investment.
f Calculate the modified internal rate of return MIRR for the proposed investment.
g Evaluate the acceptability of the proposed investment using NPV IRR, and MIRR.
a The payback period of the proposed investment is years. Round to two decimal places.
Data table
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tableYear Cash inflows
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