Payback, NPV, and IRRRieger International is attempting to evaluate the feasibility of investing 97,000 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 followingtable. The firm has a 11% cost of capital.

a.Calculate the payback period for the proposed investment. (Round to two decimalplaces.)

b.Calculate the net present value(NPV) for the proposed investment. (Round to two decimalplaces.)

c.Calculate the internal rate of return (IRR), rounded to the nearest wholepercent, for the proposed investment. (Round to two decimalplaces.)

d.Evaluate the acceptability of the proposed investment using NPV and IRR. What recommendation would you make relative to implementation of theproject?

1 $35,000

2 $25,000

3 $40,000

4 $25,000

5 $25,000