Cash Flow Analysis (in £)

• Initial Investment: £100,000
• Cash Inflows:
  • Year 1: £25,000
  • Year 2: £35,000
  • Year 3: £45,000
  • Year 4: £55,000
  • Year 5: £65,000

Required:

1. Calculate the NPV using a discount rate of 7%.
2. Determine the project's IRR.
3. Compute the Profitability Index.
4. Assess if the project meets the investment criteria based on NPV and IRR.
5. Perform a break-even analysis on the cash inflows.