Calculate the payback period for the proposed investment

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Could you show me how to find the payback period using excel functions?Payback, NPV, and IRR Year Cash Inflows Rieger International is evaluating the feasibility of investing ?$90,000 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 9?% cost of capital.

1 $30,000

2 $25,000

3 $20,000

4 $25,000

5 $30,000

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?

Reference no: EM132641586

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