IBM is considering investing in new equipment with the following cash flows:

• Initial Investment: $1,000,000
• Year 1 Cash Flow: $250,000
• Year 2 Cash Flow: $300,000
• Year 3 Cash Flow: $350,000
• Year 4 Cash Flow: $400,000
• Year 5 Cash Flow: $450,000
• Discount Rate: 10%

Requirements:

1. Calculate the Net Present Value (NPV) of the investment.
2. Determine the Internal Rate of Return (IRR).
3. Calculate the Payback Period.
4. Analyze the profitability of the investment for IBM.