XYZ Corporation is evaluating a major capital investment project to modernize its production facilities. The project requires an initial investment of $50 million and is expected to generate cash inflows of $10 million annually for the next 10 years. However, there is uncertainty regarding market demand, technological advancements, and regulatory changes that could impact the project's profitability. Conduct a comprehensive risk assessment of the investment, considering factors such as market volatility, competitive dynamics, and operational risks. Evaluate the project's payback period and discuss how risk considerations may influence XYZ Corporation's decision-making process. Provide recommendations for risk mitigation strategies and strategic contingency planning to enhance the project's viability and long-term success.