XYZ Corporation is considering launching a new product line that requires an initial investment of $1,000,000 in research and development (R&D) expenses. The company expects the new product line to generate annual revenues of $500,000 and incur annual expenses of $300,000 for the next five years. The discount rate is 12%.

Develop a detailed financial projection, including cash flows, net present value (NPV), and profitability index (PI), to assess the feasibility of launching the new product line for XYZ Corporation.