Evergreens Corp. is attempting to evaluate a $129,000 investment in a machine with a 5-year life. The firm has estimated the cash inflows associated with the proposal as shown below. The firm has a 10% cost of capital End of Year (t)

Cash Inflows (CF)

1
$15,000

2
22,000

3
29,000

4
32,500

5
38,000

Calculate the payback period for the proposed investment. (2 points)
Calculate the NPV for the proposed investment. (2 point)
Calculated the IRR for the proposed investment. (2 point)
Evaluate the acceptability of the proposed investment using NPV and IRR. What recommendation would you make relative to implementation of the project? Why? (2 point)

The business cycle is the periodic but irregular up-and-down movement in economic activity, measured by fluctuations in real gross domestic product (gdp) and other macroeconomic variables. a business cycle is typically characterized by four phases—recession, recovery, growth, and decline—that repeat themselves over time. economists note, however, that complete business cycles vary in length. the duration of business cycles can be anywhere from about two to twelve years, with most cycles averaging six years in length. some business analysts use the business cycle model and terminology to study and explain fluctuations in business inventory and other individual elements of corporate operations. but the term "business cycle" is still primarily associated with larger (industry-wide, regional, national, or even international) business trends.