DEF Corporation has the following information regarding a proposed project:

• Initial Investment: EUR 250,000
• Life of the Project: 10 years
• Salvage Value: EUR 20,000
• Cost of Capital: 8%

Projected Cash Flows:

Year	Cash Flow
1	30,000
2	40,000
3	50,000
4	60,000
5	70,000
6	80,000
7	90,000
8	100,000
9	110,000
10	120,000

Requirements:

1. Calculate the payback period.
2. Determine the NPV.
3. Compute the IRR.
4. Evaluate the ARR.
5. Should DEF Corporation proceed with the project? Provide justification.