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Year Cash Flow ($) Salvage Value ($) 0 -15,000 - 1 3,000 - 2 4,000 - 3 5,000 - 4 6,000 - 5 5,000 2,000

Year

Cash Flow ($)

Salvage Value ($)

0

-15,000

-

1

3,000

-

2

4,000

-

3

5,000

-

4

6,000

-

5

5,000

2,000

Requirements:

  1. Calculate the NPV with a 7% discount rate.
  2. Determine the IRR.
  3. Compute the Payback Period.
  4. Assess the project's profitability if the salvage value at the end of year 5 is considered.
  5. Evaluate if the project is financially feasible.

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