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The large furniture retailer Sofa So Good is evaluating an investment project. They will use the NPV , Profitability Index, and Internal Rate of Return.

The large furniture retailer Sofa So Good is evaluating an investment project. They will use the NPV, Profitability Index, and Internal Rate of Return. The cost of capital or discount rate is 5%. Please evaluate this project to see if one should accept or reject it, and why, based on the criteria for each method. Please see below the table, for more very important information. The Sofa so good furniture is evaluating the following project: YearsCash Flow Project 0-$30,0001$15,0002$15,0003$15,0004$15,0005$15,000At the end of the five years, the owner of the furniture store decides would sell the project, for $20,000. Hence, this is added to the positive cash flow or income in year 5.A. Please calculate the net present value, the profitability index, and the internal rate of return for this project to see if feasible for the owner of the Sofa so Good furniture business.B. Based on each method, the net present value, the profitability index, and the Internal rate of return, using the capital budgeting decision criteria for each method, please list if you would you accept or reject the project, based on each of the decision criteria for each method.i. Net present value Accept/Reject? Why, based on NPV criteria for choosing investment projects?ii. Profitability index - Accept/Reject? Why?iii. Internal rate of return - Accept/Reject? Why?

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