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