A retail company is considering an expansion project with the following cash flows:

Initial Investment: $1,000,000

Yearly Cash Inflows:

•Year 1: $250,000

•Year 2: $300,000

•Year 3: $350,000

•Year 4: $400,000

•Year 5: $450,000

PVIF (10%):

•Year 1: 0.909

•Year 2: 0.826

•Year 3: 0.751

•Year 4: 0.683

•Year 5: 0.621

Requirements:

1.Calculate the discounted payback period.

2.Determine the net present value (NPV) of the project.

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

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

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