A business is considering an investment in a project that will cost $800,000 and generate cash inflows of $150,000 per year for the next 10 years. The business's cost of capital is 10%.

Requirements:

1. Calculate the payback period.
2. Compute the Net Present Value (NPV).
3. Determine the internal rate of return (IRR).
4. Calculate the profitability index (PI).
5. Decide whether the investment should be made based on the calculated NPV and IRR.