A firm invests $350,000 in a project with the following expected returns:

PROJECT I:

• Year 1: $80,000
• Year 2: $90,000
• Year 3: $100,000
• Year 4: $60,000
• Year 5: $50,000

Required:

1. Compute the Payback Period.
2. Calculate the NPV assuming a 6% discount rate.
3. Determine the IRR.
4. Evaluate the profitability index.
5. Calculate the discounted payback period.