I think there are two ways to calculate. One is the final value and the other is the present value.

Method 1: the final compound interest value: Fv (6) = PV * fvif (12%, 6) =100000 *1.974 =197400.

Final investment value: FVA (5) = A * FVIFA (12%, 5) = 24000 * 6.353 = 152472.

It can be concluded that this project is uneconomical.

Method 2: Present value of annual profit deferred annuity:

V=A*PVIFA( 12%，5)*PVIF( 12%， 1)= 77262.32 & lt； 100000

So the project is not cost-effective.