1. General Electric evaluates a new project with an initial investment of $20,000,000, expected cash flows: Year 1 $5,000,000, Year 2 $7,000,000, Year 3 $9,000,000, discount rate 12%.
   • Requirements:
     • Calculate the net present value (NPV) of the project.
     • Conduct a sensitivity analysis on cash flows and the discount rate.
     • Determine the payback period and accounting rate of return.
     • Evaluate the project's risk-adjusted profitability index.
     • Recommend whether to accept or reject the project based on financial analysis.