ABC Ltd. has the following cash flows for a potential investment:

• Initial outlay: $8,000
• Year 1: $2,000
• Year 2: $3,000
• Year 3: $3,500
• Year 4: $4,000

The firm's required rate of return is 14%.

Requirements:

1. Calculate the NPV.
2. Determine the IRR.
3. Compute the payback period.
4. Discuss the implications if the project's life is extended by 2 years with additional inflows of $1,500 each year.