5. Mary Bighairis considering investing in a beautysalonthat will cost her $18,000. The after-tax cash flows on the investment should be about $4,000 per year for the next 5 years. Her opportunity cost of capital is 10.2 percent. Find the Profitability Index (PI) of buying the beauty salon:

(Do not round intermediate calculations; round final answer to four decimals, i.e. 123.4567)

Answer:______________

6.Based on the Profitability Index (PI)results you obtained in the previous question,is the beauty salona good investment?Why or why not? Explain fully.

Answer: _______________