A pharmaceutical company is analyzing a new drug development project with the following details:

**Initial Investment:

2: $300,000

•Year 3: $350,000

•Year 4: $400,000

•Year 5: $450,000

Discount Rate: 15%

Requirements:

1.Calculate the payback period.

2.Determine the net present value (NPV).

3.Compute the internal rate of return (IRR).

4.Evaluate the project’s profitability index (PI).

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