A company is planning to introduce a new product line with the following financial projections:

• Initial investment: $600,000
• Expected life: 5 years
• Annual revenue: $200,000
• Annual operating expenses: $80,000
• Tax rate: 30%
• Depreciation: Straight-line
• Discount rates and PV factors:
  • 8%: 4.312
  • 10%: 4.169
  • 12%: 3.605
  • 14%: 3.433
  • 16%: 3.274

Requirements:

1. Compute the net present value (NPV) at a 10% discount rate.
2. Calculate the internal rate of return (IRR).
3. Determine the payback period.
4. Calculate the accounting rate of return (ARR).
5. Perform a scenario analysis on NPV with ±10% changes in annual revenue.