1. A New Zealand business has a taxation balance date of 31 March. On the 30 January this year the business purchased a new asset for $66315. Installation costs were $5215. The allowable straight-line depreciation rate is 23.9% per annum for tax purposes. What is the maximum depreciation the business will be able to claim in its tax return this year?

2.A project is expected to last for 5 years and has annual net cash inflows of $11698 per annum. The project's initial investment is $50586 and the firm's weighted average cost of capital 11.4 per cent. What is the project's profitability index?

I know the answer is4274, 0.85 but I am unsure how to calculate it.

Could you please show the work of how you derived at the correct answer?