An investment project requires an initial outlay of $180,000 and has the following projected net cash flows:

• Year 1: $45,000
• Year 2: $50,000
• Year 3: $55,000
• Year 4: $60,000
• Year 5: $65,000
• Salvage Value: $25,000 (at the end of Year 5)

The discount rate is 12%.

Requirements:

1. Calculate the NPV.
2. Determine the IRR.
3. Find the profitability index.
4. Calculate the payback period and discounted payback period.
5. Make a recommendation based on the financial analysis.