Nike Inc. provided the following financial data for a capital budgeting decision:

• Initial Investment: $2,000,000
• Annual Cash Inflows: $400,000
• Annual Cash Outflows: $50,000
• Project Life: 7 years
• Required Rate of Return: 9%

Requirements:

1. Calculate the Net Present Value (NPV).
2. Determine the Internal Rate of Return (IRR).
3. Compute the Payback Period.
4. Analyze the project's profitability.
5. Discuss the impact of annual cash outflows on NPV.