Investment Proposal:

• Initial Cost: $12,000
• Cash Flows for 4 years: $3,000, $3,500, $4,000, $5,000

Requirements:

1. Calculate the NPV at a 9% discount rate.
2. Determine the IRR for the investment.
3. Compute the Payback Period.
4. Calculate the Accounting Rate of Return (ARR).
5. Assess the project’s acceptability based on NPV, IRR, and ARR.