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