A company is considering a five-year project that would require a $2,805,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 14%. The project would provide net operating income in each of five years as follows:

Sales$2,741,000Variable expenses1,125,000Contribution margin1,616,000Fixed expenses:Advertising, salaries, and other fixed out-of-pocket costs$642,000Depreciation561,000Total fixed expenses1,203,000Net operating income$413,000

1.What is the profitability index for this project?

2.what is the project's net present value?

3.What is the project's payback period?