YZA Ltd is considering a project with the following details:

• Initial investment: $250,000
• Annual profits before depreciation and tax:
  • Year 1: $50,000
  • Year 2: $60,000
  • Year 3: $70,000
  • Year 4: $80,000
  • Year 5: $90,000

The project will be depreciated straight-line over 5 years with no salvage value. The tax rate is 27%. Required:

a. Calculate the Payback Period and ARR
 b. Determine NPV and PI, assuming a discount rate of 10%
 c. Calculate the IRR
 d. Perform a risk analysis considering different profit scenarios