Project A

CAPEX

$16,700

Rent expense

$2700

Supplies expense

$2750

Prepaid expense

$1500

Utilities expense

$800

Insurance expense

$500

Unearned Revenue

$3200

Gas Expense

$720

Project period

5 years

Sales

$8500

Discount rate table

GDP

2%

Risk free

5%

Risk premium

4.5%

Interest Rate

8%

REQUIRED

Calculate the initial investment, After tax cash flow and terminal value of the project .

Calculate the discounted payback period of the project

Estimate the NPV and PI of the project

What is the IRR of the project ?