MNO Corporation is considering a project that requires an initial outlay of $750,000 and will produce the following cash inflows:

• Year 1: $500,000
• Year 2: $220,000
• Year 3: $290,000
• Year 4: $2560,000
• Year 5: $980,000

Requirements:

1. Compute the payback period.
2. Calculate the NPV at a discount rate of 11%.
3. Calculate the IRR.
4. Compute the profitability index.
5. Assess whether MNO Corporation should undertake the project.