###Question 8###

PQR Inc. is planning to invest in new technology. The initial cost of the technology is $400,000. The projected net cash flows are as follows:

Projected Net Cash Flows (in thousands of dollars)

Year 1: $90$

Year 2: $110$

Year 3: $130$

Year 4: $150$

Year 5: $170$

Year 6: $190$

Requirements:

1. Calculate the Net Present Value (NPV) of the investment using a discount rate of $8%$.
2. Determine the Internal Rate of Return (IRR) for the investment.
3. Find the payback period for the investment.
4. Compute the profitability index (PI) for the investment.
5. Discuss the potential strategic benefits of investing in the new technology.