• Investment Proposal:
  • Initial Cost: $200,000
  • Cash Inflows:
    • Year 1: $50,000
    • Year 2: $60,000
    • Year 3: $70,000
    • Year 4: $80,000
    • Year 5: $90,000
• Requirements:
  • Compute the NPV at a 10% discount rate.
  • Determine the IRR.
  • Calculate the Payback Period.
  • Evaluate the PI.
  • Assess the project’s ARR.