• Initial Investment: $10,000
  • Cash Inflows:
    • Year 1: $3,000
    • Year 2: $3,500
    • Year 3: $4,000
    • Year 4: $4,500
    • Year 5: $5,000

Requirements:

1. Calculate the Accounting Rate of Return (ARR).
2. Determine the Payback Period.
3. Compute the NPV using a discount rate of 6%.
4. Evaluate the IRR.
5. Assess the risk factors associated with the project.