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show all workings very urgent please QUESTION 4 Ribu Riban Company is attempting to evaluate the feasibility on investing RM95,000 in a piece of equipment
show all workings very urgent please
QUESTION 4 Ribu Riban Company is attempting to evaluate the feasibility on investing RM95,000 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 12% cost of capital. Year (0) 1 2 3 4 5 Cash inflows(CFt) - RM 20,000 25,000 30,000 35.000 40,000 a. Calculate the net present value (NPV) for the proposed investment. b. Calculate the internal rate of return (IRR) for the proposed investment. C. Evaluate the acceptability of the proposed investment using NPV and IRR. What recommendation would you make relative to implementation of the project? Why? d. What if NPV and IRR result contradicts one another. Theoretically which result should you choose? How about practically? Is there any difference? Discuss. (Total: 20 marks)Step by Step Solution
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