INVESTING $105,000 IN A PIECE OF EQUIPMENT THAT HAS 5 YEAR LIFE.

THE FIRM HAS A COST OF CAPITAL 11%

Year (t) 1 23 4 5 Cash inflows (CF) $25,000 $25,000 $35,000 $40,000 $35,000 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