Context: XYZ Corporation is considering an investment in new machinery that costs $75,000 and has the following expected cash flows:

• Year 1: $25,000
• Year 2: $30,000
• Year 3: $20,000
• Year 4: $10,000

Requirements:

1. Calculate the internal rate of return (IRR) for the investment.
2. Compute the NPV assuming a discount rate of 12%.
3. Determine the modified internal rate of return (MIRR) assuming a finance rate of 12% and a reinvestment rate of 10%.
4. Evaluate the payback period.
5. Should XYZ Corporation proceed with the investment based on IRR and MIRR?