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please answer question completely. Evergreens Corp. is attempting to evaluate a $129,000 investment in a machine with a 5-year life. The firm has estimated the
please answer question completely.
Evergreens Corp. is attempting to evaluate a $129,000 investment in a machine with a 5-year life. The firm has estimated the cash inflows associated with the proposal as shown below. The firm has a 10% cost of capital End of Year (t) Cash Inflows (CF) 1 $15,000 2 22,000 3 29,000 4. 32,500 5 38,000 a. Calculate the payback period for the proposed investment. (2 points) b. Calculate the NPV for the proposed investment. (2 point) c. Calculated the IRR for the proposed investment. (2 point) d. Evaluate the acceptability of the proposed investment using NPV and IRR. What recommendation would you make relative to implementation of the project? Why? (2 point)Step by Step Solution
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