5. Project E has an initial required investment of $100,000. It will generate cash inflows of $30,000 per year in Year 1 and Year 2 $25,000 per year in Years 3, 4, and 5; and no cash flows in Year 6 and beyond. The applicable cost of capital is 8%. Calculate the net present value of Project E. (if necessary, round your answer to the nearest whole dollar) Present value of inflows = cash inflow * present value of discounting factor (rate %, time period) = 30,000 / 1.08 + 30,000/1.08 ^2 + 25,000 / 1.08^3 = $108,734.07 NPV = Present value of inflows = present value of outflows = $108,734.07 - $100,000 = $8734 6. Using the information from Project E in question #5 on the preceding page, calculate Project E's profitability index. (If necessary, round your answer to the nearest hundredth.)