· A project has the following cash flows. What is the Net Present Value (NPV) and the Profitability Index (PI) if the discount rate is 8%?

Cash Flows:

• Year 0: -$55,000
• Year 1: $10,000
• Year 2: $15,000
• Year 3: $20,000
• Year 4: $25,000
• Year 5: $30,000

Requirements:

1. Calculate the NPV.
2. Calculate the PI.
3. Compare the NPV and PI methods.
4. Evaluate the project's financial viability.