Project F involves an initial outlay of $500,000 and is expected to generate the following inflows:

PROJECT F:

• Year 1: $150,000
• Year 2: $130,000
• Year 3: $140,000
• Year 4: $100,000
• Year 5: $70,000

Required:

1. Compute the Payback Period.
2. Calculate the NPV with a 7% discount rate.
3. Determine the IRR.
4. Assess the project's profitability index.
5. Compute the accounting rate of return (ARR) if the annual depreciation is $100,000.