xc

P10-22 (similar to)

Question Help

Payback, NPV, and IRRRieger International is evaluating the feasibility of investing

$97,000min 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:

LOADING...

. The firm has a 9% 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?

a. The payback period of the proposed investment is

nothing years.(Round to two decimal places.)

Enter your answer in the answer box and then click Check Answer.

3

parts remaining

Clear All

Check Answer

Data Table

(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.)

Year (t)	Cash inflows (CF)
1	$30,000
2	$35,000
3	$35,000
4	$25,000
5	$35,000