An entrepreneur is considering an expansion project that involves an initial investment of $500,000. The project is expected to produce the following cash flows:

• Year 1: $150,000
• Year 2: $160,000
• Year 3: $170,000
• Year 4: $180,000
• Year 5: $190,000
• Salvage Value: $60,000 (at the end of Year 5)

The discount rate is 10%.

Requirements:

1. Calculate the NPV.
2. Determine the IRR.
3. Compute the payback period.
4. Find the discounted payback period.
5. Discuss the decision criteria and whether the project should be accepted.