PQR Co. is considering a project with an initial investment of $6,000 and expected annual cash inflows of $1,800 for five years.

Requirements:

• Calculate the NPV using a discount rate of 9%.
• Compute the IRR.
• Should the project be accepted based on NPV and IRR?
• Determine the Payback Period.
• Evaluate the effect on NPV if the discount rate decreases to 7%.