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Please answer a-g below. Thank you! All techniques Rieger International is evaluating the feasibitty of investing $89,000 in a piece of equipment that has a
Please answer a-g below. Thank you!
All techniques Rieger International is evaluating the feasibitty of investing $89,000 in a piece of equipment that has a 5 -year lifo The firm has estimated the cash inflows associated with the proposal as shown in the following table: The firm has a cost of captal of 9% 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 retum (MIRR) for the proposed investment g. Evaluate the acceptablity of the proposed investment using NPV. IRR, and MiRR a. The payback peried of the proposed investment is yoars (Round to two dearnal places) \begin{tabular}{cc} \hline Year (t) & Cash inflows (CFt) \\ \hline 1 & $35,000 \\ 2 & $20,000 \\ 3 & $40,000 \\ 4 & $25,000 \\ 5 & $25,000 \\ \hline \end{tabular} Step by Step Solution
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