XYZ Inc. is planning to launch a new product with the following financial details:

• Initial investment: $700,000
• Project life: 6 years
• Annual net cash inflows: $130,000
• Discount rates and present value factors:
  • 8%: 4.622
  • 10%: 4.355
  • 12%: 4.111
  • 14%: 3.889
  • 16%: 3.685

Requirements:

1. Calculate the net present value (NPV) at a 10% discount rate.
2. Determine the internal rate of return (IRR).
3. Compute the discounted payback period.
4. Calculate the accounting rate of return (ARR).
5. Perform a scenario analysis on IRR with ±5% changes in initial investment.