Breakdown of Cash Inflows

• Project cost: $800,000
• Cash inflows:
  • Year 1: $160,000
  • Year 2: $170,000
  • Year 3: $190,000
  • Year 4: $200,000
  • Year 5: $210,000
• Requirements:
  • Payback period calculation
  • NPV at 11%
  • IRR determination
  • ARR calculation
  • PI assessment

·Complex Investment Scenario

• A project requires a $450,000 investment and will generate the following inflows:
  • Year 1: $100,000
  • Year 2: $110,000
  • Year 3: $120,000
  • Year 4: $140,000
  • Year 5: $150,000
• Requirements:
  • Calculate the payback period.
  • Determine the NPV at 9% discount rate.
  • Find the IRR.
  • Compute the ARR.
  • Assess the PI.