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Initial Investment: $10,000 Annual Cash Inflows: $3,000 for 6 years Cost of Capital: 12% Calculate the Net Present Value (NPV). Compute the Internal Rate of

  • Initial Investment: $10,000
  • Annual Cash Inflows: $3,000 for 6 years
  • Cost of Capital: 12%
  • Calculate the Net Present Value (NPV).
  • Compute the Internal Rate of Return (IRR).
  • Determine the payback period.
  • Assess the profitability index.
  • Should the project be accepted?

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