###Question 5###

GHI Industries is considering launching a new product line. The initial investment required is $350,000. The following are the expected cash flows over the next six years:

Projected Net Cash Flows (in thousands of dollars)

Year 1: $60$

Year 2: $80$

Year 3: $100$

Year 4: $120$

Year 5: $140$

Year 6: $160$

Requirements:

1. Calculate the Net Present Value (NPV) of the project using a discount rate of $11%$.
2. Determine the Internal Rate of Return (IRR) for the project.
3. Find the payback period for the project.
4. Compute the profitability index (PI) for the project.
5. Discuss whether GHI Industries should proceed with the project based on your calculations.