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XYZ Ltd. plans to invest $500,000 in a new product line. The expected cash flows are as follows: Year 1: $100,000 Year 2: $120,000 Year

XYZ Ltd. plans to invest $500,000 in a new product line. The expected cash flows are as follows:

•Year 1: $100,000

•Year 2: $120,000

•Year 3: $140,000

•Year 4: $160,000

•Year 5: $180,000

Requirements:

1.Calculate the NPV at a discount rate of 8%.

2.Find the IRR.

3.Determine the discounted payback period.

4.Compute the ARR based on the initial investment.

5.Assess the project's feasibility based on NPV and IRR.

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