Investment Evaluation

• Initial Investment: $400,000
• Annual Cash Flows:
  • Year 1: $90,000
  • Year 2: $110,000
  • Year 3: $130,000
  • Year 4: $150,000
  • Year 5: $170,000
• Requirements:
  • Calculate the Payback Period.
  • Compute the NPV using a 14% discount rate.
  • Determine the IRR.
  • Calculate the PI.
  • Perform a sensitivity analysis on the NPV with discount rates of 10%, 14%, and 18%.