A logistics company is considering an investment in a new fleet of trucks:

• Initial investment: $600,000
• Net cash inflows:
  • Year 1: $100,000
  • Year 2: $120,000
  • Year 3: $140,000
  • Year 4: $160,000
  • Year 5: $180,000

Required Rate of Return: 10%

Requirements:

1. Compute the Payback Period.
2. Calculate the NPV.
3. Determine the IRR.
4. Assess the profitability index.
5. Evaluate if the investment should be made based on NPV and IRR.