Question 9

A company is considering a project with an initial outlay of $450,000. The project's anticipated cash flows over 5 years are provided below. The company's discount rate is 9%. Determine the NPV, IRR, and the discounted payback period.

Cash Flows:

• Year 1: $70,000
• Year 2: $90,000
• Year 3: $110,000
• Year 4: $130,000
• Year 5: $150,000

Requirements:

1. Calculate the NPV.
2. Determine the IRR.
3. Calculate the discounted payback period.
4. Make a recommendation based on the results.