Table 4.4

Initial Outlay	$11,000
Year 1 Cash Flow	$4,000
Year 2 Cash Flow	$4,000
Year 3 Cash Flow	$4,000
Year 4 Cash Flow	$4,000
Year 5 Cash Flow	$4,000

Requirements:

1. Compute the NPV with a cost of capital of 12%.
2. Determine the IRR.
3. Evaluate if the project should be accepted based on NPV.
4. Calculate the Payback Period.
5. Determine the project’s PI.