Capital Budgeting

• Initial Investment: $320,000
• Annual Cash Flows:
  • Year 1: $60,000
  • Year 2: $80,000
  • Year 3: $100,000
  • Year 4: $120,000
  • Year 5: $140,000
• Requirements:
  • Compute the Payback Period.
  • Calculate the NPV using a 10% discount rate.
  • Determine the IRR.
  • Calculate the PI.
  • Perform a sensitivity analysis with varying discount rates (8%, 10%, 12%).