Project Analysis: Initial Investment: $5,000
 Cash Flow:

• Year 1: $1,300
• Year 2: $1,400
• Year 3: $1,500
• Year 4: $1,600
• Year 5: $1,700

Required Rate of Return: 9%

Requirements:

1. Calculate the net present value (NPV).
2. Compute the payback period.
3. Determine the profitability index (PI).
4. Should the project be accepted based on the payback period?
5. Calculate the internal rate of return (IRR).