XYZ Inc. is considering expanding its operations, requiring an initial investment of $200,000. The expected cash inflows are:

• Year 1: $40,000
• Year 2: $60,000
• Year 3: $80,000
• Year 4: $100,000
• Year 5: $120,000

Requirements:

1. Calculate the NPV if the discount rate is 9%.
2. Calculate the IRR.
3. Determine the payback period.
4. Should XYZ Inc. expand its operations based on NPV and IRR?