All techniques Rieger International is evaluating the feasibility of investing $115,000 in a piece of equipment that has a 5-year life. The firm has estimated the ca inflows associated with the proposal as shown in the following table: The firm has a cost of capital of 9%. a. Calculate the payback period for the proposed investment. b. Calculate the net present value (NPV) for the proposed investment. c. Calculate the probability index for the proposed investment. d. Calculate the internal rate of return (IRR) for the proposed investment. a. The payback period of the proposed investment is years. (Round to two decimal places.) b. The NPV of the proposed investment is $. (Round to the nearest cent.) c. The probability index of the proposed investment is (Round to two decimal places.) d. The IRR of the proposed investment Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year (0) Cash inflows (CF) $30,000 $20,000 $40,000 $40,000 $40,000 12345 5:52 Next
All techniques Rieger International is evaluating the feasibility of investing $115,000 in a piece of equipment that has a 5-year life. The firm has estimated the ca inflows associated with the proposal as shown in the following table: The firm has a cost of capital of 9%. a. Calculate the payback period for the proposed investment. b. Calculate the net present value (NPV) for the proposed investment. c. Calculate the probability index for the proposed investment. d. Calculate the internal rate of return (IRR) for the proposed investment. a. The payback period of the proposed investment is years. (Round to two decimal places.) b. The NPV of the proposed investment is $. (Round to the nearest cent.) c. The probability index of the proposed investment is (Round to two decimal places.) d. The IRR of the proposed investment Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year (0) Cash inflows (CF) $30,000 $20,000 $40,000 $40,000 $40,000 12345 5:52 Next
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter19: Capital Investment
Section: Chapter Questions
Problem 13E: Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a...
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