A food processing company is considering automating its production line. The investment details are as follows:

Initial Investment: $2,200,000

Annual Cost Savings:

•Year 1: $500,000

•Year 2: $600,000

•Year 3: $700,000

•Year 4: $800,000

•Year 5: $900,000

Discount Rate: 10%

Requirements:

1.Calculate the payback period.

2.Compute the net present value (NPV).

3.Determine the profitability index (PI).

4.Assess the internal rate of return (IRR).