Question 5

An investment project requires an initial outlay of $250,000 and provides the following annual cash flows for 5 years. The company's required rate of return is 9%. Determine the NPV, profitability index, and discounted payback period.

Cash Flows:

Year	Cash Flow ($)
1	60,000
2	70,000
3	80,000
4	90,000
5	50,000

Requirements:

1. Calculate the NPV.
2. Calculate the Profitability Index.
3. Determine the discounted payback period.
4. Assess whether the project is financially viable.