• XYZ Ltd. plans to invest in a project with an initial cost of $700,000. The project will yield annual cash inflows of $140,000 for six years. Calculate the payback period, net present value (NPV) at 14%, internal rate of return (IRR), and profitability index (PI).

·Multi-Year Project Evaluation

• An initial investment of $350,000 is required for a project. The project will generate net inflows as follows:
  • Year 1: $80,000
  • Year 2: $90,000
  • Year 3: $100,000
  • Year 4: $120,000
  • Year 5: $130,000
• Requirements:
  • Determine the payback period.
  • Calculate the net present value (NPV) at a discount rate of 10%.
  • Find the internal rate of return (IRR).
  • Compute the accounting rate of return (ARR).