ABC Corp is considering a project that involves:

• Initial cost: $250,000
• Expected cash inflows:
  • Year 1: $55,000
  • Year 2: $60,000
  • Year 3: $65,000
  • Year 4: $70,000
  • Year 5: $75,000

Requirements:

1. Calculate the accounting rate of return (ARR).
2. Evaluate the project’s NPV at a 10% discount rate.
3. Calculate the payback period and discounted payback period.
4. Assess the IRR.