A food processing company is considering a project to expand its production line:

• Initial cost: $250,000
• Annual cash inflows:
  • Year 1: $70,000
  • Year 2: $80,000
  • Year 3: $90,000
  • Year 4: $100,000
  • Year 5: $110,000

Discount rate: 8%

Requirements:

1. Compute the Payback Period.
2. Calculate the NPV.
3. Determine the IRR.
4. Assess the profitability index.
5. Perform a risk analysis with a 10% decrease in net cash inflows.