A small business is considering a project requiring an initial investment of $150,000. The project is expected to generate the following annual net cash flows:

• Year 1: $40,000
• Year 2: $50,000
• Year 3: $60,000
• Year 4: $70,000
• Year 5: $80,000
• Salvage Value: $20,000 (at the end of Year 5)

The cost of capital for the project is 12%.

Requirements:

1. Create a table showing the cash flows and their present values.
2. Compute the NPV of the project.
3. Calculate the payback period and the discounted payback period.
4. Determine the IRR.
5. Discuss the viability of the project based on the NPV and IRR.