Payback, NPV, and IRR Rieger International is evaluating the feasibility of investing $96,000 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:

The firm has a 9% cost of capital.

a. Calculate the payback period for the proposed investment.

b. Calculate the net present value (NP V) 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.)

b. The NPV of the proposed investment is $

. (Round to the nearest cent.)

c. The IRR of the proposed investment is %. (Round to two decimal places.)

d. Should Rieger International accept or reject the proposed investment? (Select the best answer

below.)

O A. Accept

O B. Reject

a Payback, NPV, and IRR Rieger International is evaluating the feasibility of investing 596.000 in a piece of equipment that has a 5-year life. The firm has estimated the cash intlows associated with the proposal as shown in the following table. The firm has a 9% cost of capital a. Calculate the payback period for the proposed investment D. Calculate the nel 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? 2. The payback period of the proposed investment is years. (Round to two decimal places) D. The NPV of the proposed investment is $. Round to the nearest cont.) Data table c The IRR of the proposed investment is % (Round to two decimal places.) d. Should Rieger International accept or reject the proposed investment? (Select the best answer (Click on the confocated on the top right comer of the datatable below in order to copy its contents into a spreadsheet) OA Accept Year Cash Inflows (CF) $30,000 OB. Reject $20,000 - 1 2 3 4 5 $40.000 $30,000 $35.000