Given the following data for an investment project:
•Initial outlay: $9,000
•Year 1: $2,500
•Year 2: $2,500
•Year 3: $3,000
•Year 4: $4,000
The required rate of return is 8%.
Requirements:
1.Compute the NPV.
2.Calculate the payback period.
3.Determine the IRR.
4.Discuss the project's feasibility if the initial outlay increases to $10,000.
5.Assess the impact of a discount rate change to 10%.