An investment of $450,000 is made in Project J, with the following cash flow projections:

PROJECT J:

• Year 1: $120,000
• Year 2: $110,000
• Year 3: $130,000
• Year 4: $70,000
• Year 5: $60,000

Required:

1. Compute the Payback Period.
2. Calculate the NPV at a discount rate of 9%.
3. Determine the IRR.
4. Assess the profitability index.
5. Compute the accounting rate of return (ARR) if the annual depreciation is $90,000.