MNO Inc is evaluating an investment project that requires an initial outlay of $500,000. The expected cash flows from the project are as follows:

• Year 1: $150,000
• Year 2: $160,000
• Year 3: $140,000
• Year 4: $130,000
• Year 5: $120,000

The project has a 5-year life and will be depreciated straight-line to a zero salvage value. The company’s tax rate is 34%. Required:

a. Calculate the Payback Period and ARR
 b. Compute NPV and PI, if the discount rate is 10%
 c. Determine the IRR
 d. Conduct a scenario analysis with different discount rates