5. AAA Company is considering purchasing an apartment building that will cost 900,000. This project expects cash inflows as detailed below: Year 1 Year 2 Year 3 Year 4 $100,000 $200,000 $300,000 $250,000 The appropriate discount rate for this project is 15%. Required: What is the profitability index for this investment? Should the project be accepted? Why or why not? 6. Allen Company is considering adding bikes to their gift shop. The company estimates that the cost for the project is $18,000. Sales are expected to produce net cash inflows of $2,000 in first year, $3,000 in 2nd year, $4,000 in 3rd year, $5,000 in 4th year and $5,550 in 5th year. Required: Calculate Payback period, and should the company add bikes to their store if they assign a 4 years' maximum (desired) payback period to this project? Why or why not