Johnson & Johnson is evaluating a new medical device project that requires an initial investment of $4,500,000. The expected annual cash inflows from the project are as follows:

Year	1	2	3	4	5
Cash Inflows ($)	900,000	950,000	1,000,000	1,050,000	1,100,000

The discount rate for the project is 11%. The equipment has a residual value of $200,000 at the end of its 5-year life. The corporate tax rate is 27%.

Required:

1. Calculate the net present value (NPV) of the project.
2. Compute the internal rate of return (IRR).
3. Determine the accounting rate of return (ARR).
4. Assess the impact of the residual value on the project's profitability.
5. Evaluate the sensitivity of NPV to changes in annual cash inflows.