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EduPro Ltd. is considering a new online platform costing $450,000 with a useful life of 6 years and no residual value. It will be depreciated

EduPro Ltd. is considering a new online platform costing $450,000 with a useful life of 6 years and no residual value. It will be depreciated using the straight-line method. Additional working capital of $55,000 is required, recoverable at the end of year 6. The company’s discount rate is 12%.

Cash Flows:

  • Year 1: $90,000
  • Year 2: $110,000
  • Year 3: $130,000
  • Year 4: $150,000
  • Year 5: $170,000
  • Year 6: $190,000

Requirements:

  1. Calculate the Payback Period.
  2. Compute the NPV.
  3. Determine the IRR.
  4. Calculate the PI.
  5. Assess if the investment is feasible based on the financial metrics.

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