ABC Corp. is considering investing in a new manufacturing plant. The initial investment required is $3,500,000. The following cash inflows are expected over the next five years:

• Year 1: $900,000
• Year 2: $1,200,000
• Year 3: $1,500,000
• Year 4: $1,000,000
• Year 5: $800,000

Requirements:

1. Calculate the NPV of the project if the discount rate is 10%.
2. Calculate the payback period of the project.
3. Calculate the profitability index (PI).
4. Should ABC Corp. proceed with the investment? Justify your answer using the calculations.