1 200002 250003 300004 350005 40000rieger international is

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1 $20,000
2 25,000
3 30,000
4 35,000
5 40,000
Rieger International is attempting to determine the feasibility of investing $95,000 in a piece of equipment that has a 5 year life. The firm has estimated the cash inflows related with the proposal as shown in the table at the right. The firm has 12 percent cost of capital.

a. Determine the payback period for the proposed investment

b. B determine the net present value for the proposed investment.

c. evaluate the internal rate of return (IRR) rounded to the nearest whole percent for the proposed investment.

d. D. Calculate the acceptability of the proposed investment using NPV and IRR. What recommendation would you make relative to implementation of the project. Why

Reference no: EM13370410

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