• Project A
  • Initial Investment: $15,000
  • Cash Inflows:
    • Year 1: $3,000
    • Year 2: $4,000
    • Year 3: $5,000
    • Year 4: $5,000
    • Year 5: $6,000
• Project B
  • Initial Investment: $20,000
  • Cash Inflows:
    • Year 1: $5,000
    • Year 2: $5,000
    • Year 3: $6,000
    • Year 4: $7,000
    • Year 5: $8,000
• Project C
  • Initial Investment: $25,000
  • Cash Inflows:
    • Year 1: $7,000
    • Year 2: $6,000
    • Year 3: $8,000
    • Year 4: $7,000
    • Year 5: $9,000

Requirements:

1. Calculate the Return on Investment (ROI) for each project.
2. Determine the Profitability Index (PI) using a discount rate of 8%.
3. Compare the Payback Period for each project.
4. Evaluate the feasibility of each project using the PI method.

Analyze the impact of a 2% increase in the discount rate on the NPV of each project.