Rieger International is evaluating the feasibility of investingn​$103,000 in a piece of equipment that has a 5-year life. The firm has estimated the cash inflows associated with the proposal as shown...


 Rieger International is evaluating the feasibility of investingn​$103,000 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 attached


The firm has a cost of capital of 9​%.


d.  Calculate the probability index for the proposed investment.

e.  Calculate the internal rate of return​ (IRR) for the proposed investment.

f.  Calculate the modified internal rate of return​ (MIRR) for the proposed investment.

Data table<br>(Click on the icon here in order to copy the contents of the data table below<br>into a spreadsheet.)<br>Year (t)<br>Cash inflows (CF,)<br>1<br>$35,000<br>$25,000<br>3<br>$25,000<br>4<br>$40,000<br>$25,000<br>Print<br>Done<br>

Extracted text: Data table (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Year (t) Cash inflows (CF,) 1 $35,000 $25,000 3 $25,000 4 $40,000 $25,000 Print Done

Jun 11, 2022
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