• 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.