Project Economics: Initial Outlay: $8,000
 Annual Cash Flows:

• Year 1: $2,000
• Year 2: $2,100
• Year 3: $2,200
• Year 4: $2,300
• Year 5: $2,400

Cost of Capital: 13%

Requirements:

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