XYZ Ltd. is considering a project with the following details:

• Initial investment: $650,000
• Annual cash inflows: $160,000 for 6 years
• Depreciation: Straight-line to zero
• Salvage value: $30,000
• Required rate of return: 8%
• Tax rate: 20%

Required:

1. Calculate the NPV of the project.
2. Determine the IRR.
3. Compute the payback period.
4. Calculate the discounted payback period.
5. Provide a recommendation based on the financial analysis.