A manufacturing firm is considering an overhaul of its production line at a cost of $650,000. The project is expected to yield the following cash flows:

• Year 1: $140,000
• Year 2: $160,000
• Year 3: $180,000
• Year 4: $200,000
• Year 5: $220,000

Requirements:

1. Calculate the payback period.
2. Calculate the NPV at a discount rate of 10%.
3. Calculate the IRR.
4. Calculate the profitability index.
5. Recommend if the investment should be made based on NPV and IRR.