PQR Industries is evaluating a new project that involves an initial investment of $1,000,000. The project is expected to generate annual cash inflows of $250,000 for 7 years. The equipment will be depreciated over 7 years using the straight-line method.

Requirements:

• Calculate the payback period.
• Calculate the NPV at a discount rate of 10%.
• Calculate the IRR.
• Determine the profitability index.
• Advise PQR Industries on the investment decision.