A business is evaluating a new project with the following financial projections:

• Capital cost: $450,000
• Expected life: 5 years
• Annual net cash inflows: $90,000
• Discount rates and cumulative factors:
  • 9%: 4.240
  • 11%: 3.996
  • 13%: 3.775
  • 15%: 3.570
  • 17%: 3.380

Requirements:

1. Calculate the net present value (NPV) at an 11% discount rate.
2. Determine the internal rate of return (IRR).
3. Compute the payback period.
4. Calculate the profitability index (PI).
5. Assess the impact on NPV if the project life is extended by 1 year.