1. Company: WXY Tech

Scenario: Capital Budgeting

Data:

• Initial Investment: $1,000,000
• Annual Cash Inflows: $250,000
• Project Life: 6 years
• Discount Rate: 10%

Requirements:

1. Calculate the Net Present Value (NPV) of the project.
2. Determine the Internal Rate of Return (IRR).
3. Discuss the importance of capital budgeting in cost control.
4. Provide recommendations based on the NPV and IRR analysis.