Scenario: A firm is considering a project with the following forecasted revenues and costs:

• Initial Cost: $30,000
• Discount Rate: 8%

Year	Revenues	Costs
1	$10,000	$3,000
2	$12,000	$4,000
3	$14,000	$5,000
4	$16,000	$6,000

Requirements:

1. Calculate the NPV.
2. Calculate the IRR.
3. Determine the Accounting Rate of Return (ARR).
4. Compute the Payback Period.
5. Determine if the project should be undertaken based on NPV and IRR.