1. Ravenclaw Widgets and Wands is a manufacturing company that has a limited amount of capital available, A new 20 year project has just been proposed. You have been asked to calculate the profitability index of the project, it has a cost of $400,000 and annual cash flows of $50,000 in years 110 and $25,000 in years 11-20. Ravenclaw's required rate of return is 10%. a) [10 marks] Calculate the profitability index of the project. b) [6 marks] Based on the index, do you think this is a good project to invest in? Briefly explain why or why not