P10-24 (similar to) s Question Help All techniques-Decision among mutually exclusive investments Pound Industries is attempting to select the best of three mutually exclusive projects. The initial investment and after-tax cash inflows associated with these projects are shown in the following table. Cash flows Initial investment (CF) Cash inflows (CF), t= 1 to 5 Project A $40.000 $15,000 Project B $80,000 $27,000 Project C $80,000 $27,500 a. Calculate the payback period for each project. b. Calculate the net present value (NPV) of each project, assuming that the firm has a cost of capital equal to 11%. C. Calculate the internal rate of return (IRR) for each project. d. Indicate which project you would recommend. a. The payback period of project A is years. (Round to two decimal places.) P10-22 (similar to) s Question Help Payback, NPV, and IRR Rieger International is evaluating the feasibility of investing $87,000 in a piece of equipment that has a 5-year life. The firm has estimated the cash inflows associated with the proposal as shown in the following table: E. The firm has a 8% cost of capital. a. Calculate the payback period for the proposed investment. b. Calculate the net present value (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 recommendation would you make relative to implementation of the project? a. The payback period of the proposed investment is years. (Round to two decimal places.) P10-22 (similar to) Question Help Payback, NPV, and IRR Rieger International is evaluating the feasibility of investing $87,000 in a piece of equipment that has a 5-year life. The firm has estimated the cash inflows associated with the proposal as shown i the following table: E. The firm has a 8% cost of capital. a. Calculate the payback period for the proposed investment. b. Calculate the net present value (NPV) for the proposed investment. C. Calculate the internal rate of return (IRR), rounded to the ne d. Evaluate the acceptability of the proposed investment using N a. The payback period of the proposed investment is years. Data Table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year (1) 2 Cash inflows (CF) $30,000 $40,000 $20,000 $35,000 $20,000 3 4 5 Print Done P10-19 (similar to) Question Help o NPV and IRR Benson Designs has prepared the following estimates for a long-term project it is considering. The initial investment is $31,580, and the project is expected to yield after-tax cash inflows of $4,000 per year for 12 years. The firm has a cost of capital of 13%. a. Determine the net present value (NPV) for the project. b. Determine the internal rate of return (IRR) for the project. c. Would you recommend that the firm accept or reject the project? a. The NPV of the project is $ (Round to the nearest cent.)