ABC limited company looking to invest in one of the Project cost that project is $50,000 and cash inflows and outflows of a project for 5 years, as shown in the below table. Calculate Profitability Index using a 5% discount rate and estimate Internal Rate of Return of the Project using Discount rates of 8% and 5%.

YEAR cash inflows cash outflows

initial investment $50,000

1 $20,000 $5,000

2 $14,000 $2,000

3 $12,000 $2,000

4 $12,000 $2,000

5 $15,000 $1,000

interest rate 5.00%

PLEASE SHOW STEP BY STEP CALCULATIONS