P$10-22$ Payback, NPV$,$ and IRR Rieger International is attempting to evaluate the feasibility

of investing $$95,000$ in a piece of equipment that has a $S-$year life. The firm has esti$-$

mated 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 ualue $($NPV$)$ for the proposed investment.

c$.$ Calculate the internal rate of return $($IRR$),$ rounded to the nearest whole percent,

for the proposed investment.

d$.$ Evaluate the acceptability of the proposed investment using NPV and IRR. What

rernmmendarinn wnuld von make relative to implementation of the project? Why?