#3. Consider, a capital expenditure project to purchase and install new equipment with an initial cash outlay of $19,000. The project is expected to generate net after cash flows each year of $1,100 for five years and at the end of the project a one time after tax cash flow of $2,500 is expected. The firm has a weighted average cost of capital of 10% and requires a 5yr payback on projects of this type. Calculate the Profitability Index for the project.