1. Find the profitability index of a project with the following cash flows using a discount rate of 3%: Period 0: -1000 Period 1: 717 Period 2: 389 Period 3: 270

Round your answer to the nearest one-hundredth.

2.

Machinery costs $1 million today and $100,000 per year to operate. It lasts for 1 years. What is the equivalent annual annuity if the discount rate is 6%?

Enter your answer in dollars and round to the nearest cent (one-hundredth).