Procter & Gamble is considering an investment in a new production facility. The following information is provided:

• Initial Investment: $5,000,000
• Annual Cash Flows: $1,200,000 for 7 years
• Discount Rate: 9%

Required:

1. Calculate the Net Present Value (NPV) of the project.
2. Determine the Internal Rate of Return (IRR).
3. Compute the Payback Period.
4. Evaluate the sensitivity of NPV to changes in the discount rate.
5. Provide recommendations for the investment decision.