· A company is evaluating a project with the following cash flows. What is the project's Net Present Value (NPV) if the discount rate is 7%?

Cash Flows:

• Year 0: -$80,000
• Year 1: $20,000
• Year 2: $25,000
• Year 3: $30,000
• Year 4: $35,000

Requirements:

1. Calculate the NPV.
2. Determine the project's feasibility.
3. Analyze the impact of an increase in the discount rate to 9%.
4. Discuss the relationship between NPV and project risk.