Project Costs and Benefits (in ¥)

• Initial Cost: ¥15,000,000
• Expected Benefits:
  • Year 1: ¥5,000,000
  • Year 2: ¥6,000,000
  • Year 3: ¥7,000,000
  • Year 4: ¥8,000,000
  • Year 5: ¥9,000,000

Required:

1. Compute the NPV of the project with a discount rate of 8%.
2. Calculate the project's IRR.
3. Determine the Payback Period.
4. Evaluate the project's profitability using the Profitability Index.
5. Perform a risk analysis assuming a 10% variability in benefits.