LMN Inc. is evaluating a project with the following expected cash inflows:

•Year 1: $30,000

•Year 2: $40,000

•Year 3: $50,000

•Year 4: $60,000

•Year 5: $70,000

The project's initial cost is $150,000.

Requirements:

1.Calculate the project's NPV at a discount rate of 7%.

2.Find the IRR.

3.Determine the discounted payback period.

4.Compute the accounting rate of return (ARR) based on the initial investment.

5.Assess if the project should proceed if the required rate of return is 7%.

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