GHI Enterprises is evaluating a potential project:

• Initial investment: $450,000
• Expected annual benefits:
  • Year 1: $90,000
  • Year 2: $95,000
  • Year 3: $100,000
  • Year 4: $105,000

Requirements:

1. Calculate the NPV at a 7% discount rate.
2. Determine the payback period.
3. Compute the IRR.
4. Evaluate the profitability index (PI).