Cash Flows:

• Initial Outlay: $1,500,000
• Year 1: $500,000
• Year 2: $600,000
• Year 3: $700,000
• Year 4: $800,000

Requirements:

1. Compute the IRR.
2. Calculate the NPV at a 12% cost of equity.
3. Find the profitability index.
4. Determine the payback period.