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Project D : Initial Outlay: $600,000 Expected Cash Flows: Year 1: $150,000 Year 2: $160,000 Year 3: $170,000 Year 4: $180,000 Year 5: $190,000 Requirements

  • Project D:
    • Initial Outlay: $600,000
    • Expected Cash Flows:
      • Year 1: $150,000
      • Year 2: $160,000
      • Year 3: $170,000
      • Year 4: $180,000
      • Year 5: $190,000
  • Requirements:
    • Calculate the NPV at a 9% discount rate.
    • Determine the IRR.
    • Compute the Payback Period.
    • Assess the PI.
    • Evaluate the project’s sensitivity to a 5% increase in costs.

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