A manufacturing company is considering a project to automate its production line. The project requires an initial investment of $1,200,000 and is expected to yield the following net cash flows over the next five years:

• Year 1: $300,000
• Year 2: $400,000
• Year 3: $500,000
• Year 4: $600,000
• Year 5: $700,000

The company's discount rate is 9%.

Questions:

1. Calculate the Net Present Value (NPV) of the project.
2. Determine the Payback Period.
3. Based on your calculations, discuss whether the company should undertake the project.