An investment of $250,000 in a new project is expected to yield the following net cash flows. Compute the payback period and NPV using a discount rate of 9%.

•Year 1: $30,000

•Year 2: $40,000

•Year 3: $50,000

•Year 4: $60,000

•Year 5: $70,000

•Year 6: $80,000

Requirements:

•Payback period

•NPV

•Profitability index

•Determine if the investment should be undertaken.