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Evergreens Corp. is attempting to evaluate a $129,000 investment in a machine with a 5-year life. The firm has estimated the cash inflows associated with

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Evergreens Corp. is attempting to evaluate a $129,000 investment in a machine with a 5-year life. The firm has estimated the cash inflows associated with the proposal as shown below. The firm has a 10% cost of capital End of Year (t) Cash Inflows (CF) $15,000 22,000 29,000 32,500 38,000 a. Calculate the payback period for the proposed investment. (2 points) b. Calculate the NPV for the proposed investment. (2 point) c. Calculated the IRR for the proposed investment. (2 point) d. Evaluate the acceptability of the proposed investment using NPV and IRR. What recommendation would you make relative to implementation of the project? Why? (2 point)

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