A project requires an initial investment of $40,000. The project is expected to produce $10,000 profit every year for the first four years and $8,000 profit (every year) in the following three years (i.e., years 5-7). What are the net present value (NPV) and the profitability index (PI) of this project assuming a discount rate of 7%? NPV = $9,889 and PI = 1.25 NPV = $8,514 and PI = 1.07 NPV = $9,290 and PI = 1.08 NPV = $9,514 and PI = 1.25 None of the above.