A company plans to launch a new product and has estimated the following cash flows:

• Initial development cost: $30,000
• Year 1: $10,000
• Year 2: $15,000
• Year 3: $20,000
• Year 4: $25,000

Assuming a discount rate of 18%:

1. Calculate the NPV.
2. Determine the IRR.
3. Evaluate the project using the Profitability Index.
4. Discuss the advantages and disadvantages of using NPV versus IRR for project evaluation.