STU Corporation is planning to invest in a new project:

• Initial outlay: $550,000
• Projected cash inflows:
  • Year 1: $120,000
  • Year 2: $125,000
  • Year 3: $130,000
  • Year 4: $135,000
  • Year 5: $140,000

Requirements:

1. Calculate the NPV using a 9% discount rate.
2. Compute the payback period.
3. Determine the IRR.
4. Evaluate the profitability index (PI).