Pfizer Inc. is considering a new research and development project that requires an initial investment of $25,000,000. The project is expected to generate the following annual cash inflows:

Year	1	2	3	4	5	6	7	8	9	10
Cash Inflows ($)	3,500,000	3,600,000	3,700,000	3,800,000	3,900,000	4,000,000	4,100,000	4,200,000	4,300,000	4,400,000

The discount rate for the project is 10%. The project has a residual value of $500,000 at the end of its 10-year life. The corporate tax rate is 21%.

Required:

1. Calculate the net present value (NPV) of the project.
2. Compute the internal rate of return (IRR).
3. Determine the profitability index (PI).
4. Assess the payback period of the project.
5. Evaluate the sensitivity of NPV to changes in annual cash inflows.