GHI Ltd. plans to expand its production capacity by building a new factory. The cost of construction is estimated at $2,000,000. The factory will generate additional revenues of $500,000 per year, with annual operating costs of $100,000, for 10 years. The discount rate is 9%.

• Requirements:
  • Calculate the Net Present Value (NPV) of the expansion project.
  • Determine the Payback Period.
  • Calculate the Accounting Rate of Return (ARR).
  • Evaluate the overall financial viability of the project.