Rieger international is attempting to evaluate the, Ask an Expert

Finance

Rieger International is attempting to evaluate the feasibility of investing ?$80,000 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:

Year (t) Cash inflows? (CF)

1 ?$20,000

2 $40,000

3 $20,000

4 $20,000

5 $30,000

The firm has a 9?% cost of capital.

a. Calculate the payback period for the proposed investment. (round to two decimal places)

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?

View complete question

Financial Management, Finance

Category:- Financial Management
Reference No.:- M92332526

Have any Question?Write your Review or question?

Related Questions in Financial Management

Questions 1 when can there arise a conflict between

Questions 1. When can there arise a conflict between shareholders and managers goals? How does wealth maximization goal take care of this conflict? 2. A company has just tested the market for a new product. The test indi ...

Assignmentthe interview assignment asks you to perform an

Assignment The interview assignment asks you to perform an informational interview with a professional within the Fitness and Wellness industry. The person does not have to be an owner but simply someone who is or has be ...

Assignmentselect a general industry that interests you and

Assignment Select a general industry that interests you and choose a particular market domain within that industry to expand your research and use as a model throughout the course. A market domain may be defined as a seg ...

Write a 700-word report in which you address the

Write a 700-word report in which you address the following: Define and explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. Include at least ...

Answer the following question bullthe importance of

Answer the following Question : • The Importance of Reserves to a Bank • The connection between the availability of mortgage financing and home ownership rates? • Profits and Risks of Off-Balance-Sheet Activities • The S ...

Use the internet to locate information regarding a

Use the Internet to locate information regarding a negotiation from the past 6 months that you would consider to be integrative in nature. Examine the differences between distributive and integrative negotiation. Determi ...

Phenomenology assignmentimportantplease use level 1 headers

PHENOMENOLOGY ASSIGNMENT IMPORTANT: Please use Level 1 Headers in your paper so that I can easily discern what part of the assignment you are addressing. Since there are 5 questions in this assignment, you would need 6 L ...

Discuss the following questions professional or trade

Discuss the following Questions : Professional or trade organizations can provide ethical guidelines for business or professionals within their selected organization. Research a professional or trade organization. Provid ...

Reflection papernbsp instructionsas you continue on your

Reflection Paper : Instructions As you continue on your quest for academic success, it is important to share your knowledge with others. In fact, you have been asked to provide advice to future students on academic inte ...

The following examination is due no later than 9 am monday

The following examination is due no later than 9 AM Monday, October 22nd. You are to email me the exam in an XLSX file named after yourself and containing your section. For example, if your name is Leslie King, the file ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Management Expert