A retail chain is considering a new store that requires an investment of $1,000,000 and has projected the following cash flows:

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

Requirements:

1. Calculate the payback period.
2. Calculate the NPV using a 9% discount rate.
3. Calculate the IRR.
4. Evaluate the project using NPV and IRR criteria.
5. Calculate the Profitability Index.