A company is evaluating a capital investment project requiring an initial outlay of $250,000 and expected to generate annual cash inflows of $70,000 for 5 years. The company's discount rate is 8%. Calculate the NPV and IRR of the project. Conduct a sensitivity analysis by varying the discount rate (6%, 8%, 10%) and the annual cash inflows ($60,000, $70,000, $80,000). Discuss how sensitivity analysis helps in assessing the robustness of the project's financial outcomes under different scenarios. Analyze the implications of changes in key variables on the project's NPV and IRR. Consider the strategic importance of incorporating sensitivity analysis in capital budgeting decisions, including identifying critical risk factors and evaluating the project's risk-return profile. Discuss how sensitivity analysis can support decision-making by providing insights into the potential variability of project returns and the impact of uncertainties on investment performance.