7. An investor is considering a capital expenditure for new production facilities. The relevant cash flows are listed below: (12 points) Initial Investment = $280,000 Year 1 2 3 4 5. a. b. Cashflow $84,000 68,000 74,000 85,000 102,000 Calculate the firm's profitability index. Assume a cost of capital of 11.4%. Calculate the project's internal rate of return (interpolate your results to two decimal points). I this an acceptable project? Why or why not?