a. The initial cost of a project is $1 million. The project will run for 5 years. The required rate of return for the project is 11%. The project will have the following cash flows from year 1 to year 5 Year1: - 200,000; Year 2: -100,000; Year 3: 400,000; Year 4: 300,000; Year 5 400,000 What is the Profitability Index of this project? (5 marks) ** show your work b. The initial investment of a project is $600,000. The net cash flow in year 1 is $200,000. After that the cash flows will grow at a rate of 10% every year until the end of project's life. The project will end at the end of year 5 . What is the simple pay back of this project? (5 marks) show your work