XYZ Corp is evaluating a new project. The initial investment required is $300,000. The project is expected to generate the following annual cash flows:

• Year 1: $90,000
• Year 2: $120,000
• Year 3: $110,000
• Year 4: $100,000
• Year 5: $80,000

The project will be depreciated using the straight-line method over its 5-year life with no salvage value. The tax rate is 25%. Required:

1. Compute the Payback Period (PBP) and ARR
2. Calculate NPV and PI, assuming the cost of capital is 8%
3. Determine the IRR
4. Analyze the sensitivity of the NPV to changes in the discount rate