A project with an initial investment of $437,300 will generate equal annual cash flows over its 8-year life. The project has a required return of 7.9 percent. What is the minimum annual cash flow required to accept the project?

$72,950.10

$83,706.22

$75,808.12

$86,637.85

A project with an initial cost of $31,900 is expected to provide cash flows of $12,750, $13,000, $16,100, and $10,600 over the next four years, respectively. If the required return is 8.9 percent, what is the project's profitability index?

.748

1.115

1.338

1.226

1.505