A logistics firm is evaluating a new distribution center costing $900,000 with the following cash flow projections:

• Year 1: $250,000
• Year 2: $300,000
• Year 3: $350,000
• Year 4: $400,000
• Year 5: $450,000

Requirements:

1. Determine the payback period.
2. Calculate the NPV at a 10% discount rate.
3. Calculate the IRR.
4. Calculate the profitability index.
5. Recommend whether the project should be accepted.