Question: 5. Explain the concepts underlying Net Present Value (NPV), the Profitability Index, the Internal Rate of Return (IRR), Payback Period and Discounted Payback Period, and

5. Explain the concepts underlying Net Present Value (NPV), the Profitability Index, the Internal Rate of Return (IRR), Payback Period and Discounted Payback Period, and why they are helpful in making financial decisions on a given project. How do these concepts help us to find out whether a given project will be a good idea or not? Feel free to include a brief example if you find it necessary to do so to illustrate your point

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