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evaluating the proposed project

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Please help with the following problem.

Evaluate the feasibility of investing 95,000$ in a piece of equipment having a 5-year life. In assessing the proposed project, you have been able to estimate the cash flows associated with the proposed project to be:

Year Amount
1 20,000
2 25,000
3 30,000
4 35,000
5 40,000

You have determined the cost of capital to be 12%

Using the 1) payback 2) net present value and 3) internal rate of return methods of capital project evaluation, evaluate the acceptability of the proposed project. Also, based on your findings, what recommendation would you make relative to the implementation of the project? Why?

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Evaluate feasability
Evaluate the feasability of investing 95,000$ in a piece of equipment haing a 5-year life. In evalutating the proposed project you have been able to estimate the cash ...

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