Initial Investment and Cash Flows

• Initial Investment: $300,000
• Cash Inflows:
  • Year 1: $70,000
  • Year 2: $80,000
  • Year 3: $100,000
  • Year 4: $90,000
  • Year 5: $60,000
• Requirements:

1. Calculate the Payback Period.
2. Compute the Net Present Value (NPV) if the discount rate is 12%.
3. Determine the Internal Rate of Return (IRR).
4. Calculate the Profitability Index (PI).
5. Assess the project’s viability based on the calculated metrics.