Question
Please show me how to do in Excel only. Showing all formulas. Thank you very much Payback, NPV, and IRRRieger International is evaluating the feasibility
Please show me how to do in Excel only. Showing all formulas. Thank you very much
Payback, NPV, and IRRRieger International is evaluating the feasibility of investing $95,000 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:
1 $30,000
2 $25,000
3 $30,000
4 $35,000
5 $40,000
The firm has a 12% 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?
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