Project life is 5 years.

Initial investment = 17,000

Bank rate = 10%

Equity = 20%

Debt equity ratio =50:50

Is the project feasible, based on which criteria? What is its payback period? Internal Rate of Return? Is the project feasible based on its IRR?

Income statement

Sales 20,000

CGS 15,000

Op. Profit 5,000

Overheads 2,000

Depreciation 500

Net income 2,500 assume stays the same for 5 years