A project requires an initial investment of $150,000 and is expected to generate the following net cash inflows:

PROJECT B:

• Year 1: $50,000
• Year 2: $70,000
• Year 3: $80,000
• Year 4: $60,000
• Year 5: $40,000

Required:

1. Compute the Payback Period.
2. Calculate the Net Present Value (NPV) if the discount rate is 8%.
3. Determine the Internal Rate of Return (IRR).
4. Assess the project's profitability index.