Future Cash Flows and Investments (in ¥)

• Initial Investment: ¥20,000,000
• Expected Annual Returns:
  • Year 1: ¥4,000,000
  • Year 2: ¥6,000,000
  • Year 3: ¥8,000,000
  • Year 4: ¥10,000,000
  • Year 5: ¥12,000,000

Required:

1. Calculate the NPV with a 10% discount rate.
2. Determine the IRR.
3. Compute the Payback Period.
4. Evaluate the investment decision based on NPV and IRR.
5. Perform a sensitivity analysis assuming a 5% increase in annual returns.