A company is considering investing in a project that has the following cash flows:

• Initial outlay: $4,000
• Year 1: $1,500
• Year 2: $1,500
• Year 3: $1,500
• Year 4: $1,500

The required rate of return is 10%.

Requirements:

1. Compute the Net Present Value (NPV) of the project.
2. Determine if the project should be accepted.
3. Calculate the Internal Rate of Return (IRR).
4. Discuss the sensitivity of NPV to changes in the discount rate.