Cash Flow Analysis

• Initial Investment: $250,000
• Annual Cash Flows:
  • Year 1: $50,000
  • Year 2: $60,000
  • Year 3: $75,000
  • Year 4: $80,000
  • Year 5: $55,000
• Requirements:
  • Calculate the Discounted Payback Period using a 10% discount rate.
  • Determine the NPV.
  • Compute the IRR.
  • Assess the financial attractiveness of the project using the PI.
  • Evaluate the sensitivity of NPV to changes in the discount rate (8%, 10%, 12%).