1. Delta Manufacturing

Scenario: Capital Budgeting Decision

Data: Delta Manufacturing is evaluating a capital investment project with the following cash flows:

• Initial Investment: $500,000
• Year 1 Cash Flow: $150,000
• Year 2 Cash Flow: $200,000
• Year 3 Cash Flow: $250,000
• Discount Rate: 10%

Requirements: Calculate the Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period for the investment project. Evaluate the financial feasibility of the project based on the capital budgeting methods. Discuss the factors influencing Delta Manufacturing's investment decision and recommend whether to accept or reject the project.