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Financial Metrics Initial Investment : $500,000 Cash Inflows : Year 1: $100,000 Year 2: $120,000 Year 3: $140,000 Year 4: $160,000 Year 5: $180,000 Requirements

Financial Metrics

  • Initial Investment: $500,000
  • Cash Inflows:
    • Year 1: $100,000
    • Year 2: $120,000
    • Year 3: $140,000
    • Year 4: $160,000
    • Year 5: $180,000
  • Requirements:
    1. Compute the Payback Period.
    2. Calculate the NPV with a discount rate of 15%.
    3. Find the IRR.
    4. Determine the PI.
    5. Conduct a break-even analysis.

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