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Rieger International is evaluating the feasibility of investing $108,000 in a piece of equipment that has a 5-year life. The firm has estimated the cash
Rieger International is evaluating the feasibility of investing $108,000 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 cost of capital of 11%
- Calculate the payback period for the proposed investment.
- Calculate the discounted payback period for the proposed investment.
- Calculate the net present value (NV) for the proposed investment.
- Calculate the probability index for the proposed investment.
- Calculate the internal rate of return (IRR) for the proposed investment.
- Calculate the modified internal rate of return (MIRR) for the proposed investment.
- Evaluate the acceptability of the proposed investment using NV, IRR, and MIRR.
Rieger International is evaluating the feasibility of investing $108,000 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 cost of capital of 11%
- Calculate the payback period for the proposed investment.
- Calculate the discounted payback period for the proposed investment.
- Calculate the net present value (NV) for the proposed investment.
- Calculate the probability index for the proposed investment.
- Calculate the internal rate of return (IRR) for the proposed investment.
- Calculate the modified internal rate of return (MIRR) for the proposed investment.
- Evaluate the acceptability of the proposed investment using NV, IRR, and MIRR.
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