Venture Corp. is planning to invest in an advanced AI system. The details are:

• Cost of AI System: USD 750,000
• Useful Life: 6 years
• Salvage Value: USD 100,000
• Depreciation Method: Straight Line
• Cost of Capital: 17%

Expected cash flows:

Year	Cash Flow	Profit
1	150,000	25,000
2	200,000	35,000
3	250,000	45,000
4	300,000	55,000
5	350,000	65,000
6	400,000	75,000

Requirements:

a. Discuss the impact of depreciation on cash flows and project evaluation. b. Explain the significance of the Net Present Value (NPV) in investment decisions. c. Based on the provided data:

• Calculate the payback period.
• Determine the NPV.
• Compute the IRR.
• Evaluate the profitability index.