A technology company is considering a software development project:
Initial Investment: $200,000
Net Cash Inflows:
•Year 1: $60,000
•Year 2: $70,000
•Year 3: $80,000
•Year 4: $90,000
•Year 5: $100,000
Discount Rate: 12%
Requirements:
1.Compute the Payback Period.
2.Calculate the NPV.
3.Determine the IRR.
4.Assess the Modified Internal Rate of Return (MIRR).
5.Perform a break-even analysis.