XYZ Corporation is considering an expansion project. The following data is available:

• Initial investment: $10,000
• Annual operating cash flows: $3,000 for 5 years
• Salvage value at end of project: $2,000
• Cost of capital: 8%

Requirements:

1. Compute the NPV of the project.
2. Calculate the Profitability Index (PI).
3. Determine the payback period.
4. Assess the IRR of the project.