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Walmart Inc. has provided the following data for a special project: Cost Item Amount ($) Initial Investment 2,000,000 Annual Cash Inflows 600,000 Annual Cash Outflows

Walmart Inc. has provided the following data for a special project:

Cost Item

Amount ($)

Initial Investment

2,000,000

Annual Cash Inflows

600,000

Annual Cash Outflows

150,000

Project Life (years)

5

Discount Rate

8%

Requirements:

  1. Calculate the Net Present Value (NPV) of the project.
  2. Determine the Internal Rate of Return (IRR).
  3. Compute the Payback Period.
  4. Analyze the project's feasibility.
  5. Discuss the impact of a 2% increase in the discount rate on NPV.

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