Initial Investment: $3,000
Operating Cash Inflows:
•Year 1: $800
•Year 2: $900
•Year 3: $1,000
•Year 4: $1,100
•Year 5: $1,200
Cost of Capital: 12%
Requirements:
1.Calculate the net present value (NPV).
2.Compute the internal rate of return (IRR).
3.Determine the payback period.
4.Assess whether the project should be accepted based on NPV and IRR.
5.Analyze the project's profitability index (PI).