Question 8

An initial investment of $600,000 is required for a project expected to yield the following cash flows over 7 years. The discount rate is 10%. Evaluate the project by calculating the NPV, IRR, and the profitability index.

Cash Flows:

Year	Cash Flow ($)
1	80,000
2	100,000
3	120,000
4	150,000
5	200,000
6	250,000
7	300,000

Requirements:

1. Calculate the NPV.
2. Determine the IRR.
3. Calculate the Profitability Index.
4. Discuss the financial feasibility of the project.