Company A is considering an investment in a project with the following details:

• Initial investment: $500,000
• Project life: 6 years
• Annual net operating income after depreciation: $75,000
• Tax rate: 35%
• Salvage value: $0
• Discount rates and present value factors:
  • 10%: 4.355
  • 12%: 4.111
  • 14%: 3.889
  • 16%: 3.685
  • 18%: 3.498

Requirements:

1. Calculate the internal rate of return (IRR) of the project.
2. Determine the net present value (NPV) using a discount rate of 12%.
3. Calculate the payback period.
4. Compute the accounting rate of return (ARR).
5. Perform a sensitivity analysis on the IRR with ±2% changes in net operating income.