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