An initial outlay of $140,000 is needed for a project that generates the following net cash flows:

• Year 1: $20,000
• Year 2: $30,000
• Year 3: $40,000
• Year 4: $50,000
• Year 5: $60,000

Requirements:

1. Compute the cumulative cash flows each year.
2. Determine the payback period.
3. Calculate the project's NPV at a discount rate of 5%.
4. Compute the IRR.
5. Evaluate the PI.