Problem

Basic Capital-Budgeting Techniques, Uneven Net Cash Inflows and MACRS Use the data in Exer...

Basic Capital-Budgeting Techniques, Uneven Net Cash Inflows and MACRS Use the data in Exercise 12-42 for Irv Nelson, Inc., and MACRS. The asset qualifies as a 5-year property.

Required Compute for the investment its:

1. Payback period under the assumption that the cash inflows occur evenly throughout the year.


2. Book rate of return based on: (a) the initial investment, and (b) an average investment (calculated as a simple average of the 10 average annual book values).


3. Net present value (NPV).


4. Internal rate of return (IRR).


5. Modified internal rate of return (MIRR).

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