Initial Investments and Cash Inflows (in £)

Year	Project X	Project Y	Project Z
Initial Investment	12,000	18,000	25,000
Year 1	6,000	6,500	12,000
Year 2	5,500	5,500	9,500
Year 3	2,500	6,000	5,500
Year 4	1,500	12,000	2,500
Year 5	500	6,500	5,500

Required:

1. Calculate the NPV of each project assuming a discount rate of 10%.
2. Determine the IRR for each project.
3. Calculate the Payback Period for each project.
4. Assess which project should be undertaken based on the highest NPV.
5. Perform a sensitivity analysis on Project Z with discount rates of 8% and 12%.