1. Machinery costs $1 million today and $100,000 per year to operate. It lasts for 14 years. What is the equivalent annual annuity if the discount rate is 9%? Enter your answer in dollars and round to the cent. Remember that costs are negative cash flows; so, include the negative sign.

2. Find the profitability index of a project with the following cash flows using a discount rate of 4%: Period 0: -1000 Period 1: 756 Period 2: 377 Period 3: 221 Enter your answer in a decimal and round to the hundredths place.